What is a subrogation recovery?

Subrogation recovery is a legal process that is used by insurance providers to recover money paid out due to a claim in Washington. Subrogation takes place when an insurance company believes that another party is responsible for the damages or injury that caused them to pay out a claim. The insurance provider then has the right to claim that amount of money back from the other party, in order to recoup the money it had to spend on the claim. The process of subrogation starts with the insurance company sending a demand letter to the responsible party. This letter states that the responsible party must reimburse the insurance company for the money they paid out. If the responsible party does not comply with the letter, the insurance company can then pursue legal action against them in order to receive the money. When the responsible party pays the insurance company, the insurance company recoups the money paid out and is able to also receive interest, depending on the state law. This is called a subrogation recovery, as the insurance company is able to receive all the money it paid out in the insurance claim from the responsible party, with interest.

Related FAQs

What is a statement of fact?
What should I do if I disagree with an insurance company's decision?
What information do I need to provide when filing an insurance claim?
What is a co-insurance clause?
What is a waiver of subrogation?
What is an affirmative defense?
What is an insurance lien?
What is a general liability insurance policy?
What is a claim for bad faith?
What is a duty to defend clause?

What is a subrogation recovery?

Related FAQs

Related Blog Posts