What is an insurance subrogation?

Insurance subrogation is a part of insurance claims law in North Carolina. It is a legal process that enables an insurance company to seek reimbursement from a third-party liable for damages or losses that the insurance company had already covered on behalf of the policyholder. In subrogation, the insurance company is essentially stepping into the shoes of the policyholder, taking over the legal right to seek a recovery. The insurance company will pursue the liable third-party for repayment, and if successful, will then reimburse itself for the amount paid out to the policyholder. For example, if a policyholder’s home and belongings were damaged due to the negligence of a third-party, the policyholder would be able to file an insurance claim and receive compensation for the damages. The insurance company would then step in and try to recover the payment from the liable third-party. If the company is successful, then the amount that was paid out to the policyholder would be reimbursed back to the company. Subrogation is often seen as an important aspect of insurance law in North Carolina. It helps ensure that insurance companies are able to cover losses and damages incurred by policyholders, while also attempting to seek repayment from liable third-parties.

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What is an insurance subrogation?

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