What is a subrogation clause?

A subrogation clause is a clause found in insurance contracts that enables an insurance company to recover payments made on a claim. In short, it is a way for the insurance company to be reimbursed in the event that a third party is responsible for paying the claim. In South Carolina, there are many laws related to insurance subrogation clauses. For example, the state’s consumer protection laws require certain disclosures for policyholders, such as the fact that the insurance company has the right to seek reimbursement from any liable third party. Additionally, there are provisions related to when an insurance company may pursue subrogation, which can only occur after the policyholder is made whole. The main purpose of the subrogation clause is to minimize the amount of losses that an insurance company might be responsible for. This is especially important for large claims, as it provides a mechanism to reduce the amount of money the company pays out. Subrogation is commonly used in cases involving medical expenses and automobile accidents where a third party might be responsible for the damages. In South Carolina, it’s important for policyholders to understand their rights and the implications of the subrogation clause. If you have any questions related to your insurance coverage, it’s important to consult a knowledgeable attorney who can help you understand how the subrogation clause might apply to your situation.

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What is a subrogation clause?

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