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What Is Subrogation? Subrogation is a term describing a right held by most insurance carriers to legally pursue a third party that caused an insurance loss to the insured. This is done in order to recover the amount of the claim paid by the insurance carrier to the insured for the loss.
SUBROGATION RECEIPTS - 8285 Subrogation is a legal right afforded to insurers (i.e., State Compensation Insurance Fund) to seek reimbursement for losses they have paid by billing or seeking legal action against the parties that caused the losses.
Subrogation allows your insurer to recoup costs (medical payments, repairs, etc.), including your deductible, from the at-fault driver's insurance company, if the accident wasn't your fault. A successful subrogation means a refund for you and your insurer.
The eight officially anti-subrogation states are: Arizona. Connecticut. Kansas.
At the minimum, your subrogation file should contain all elements corresponding to liability determination and proof of damages. Being able to prove who is at fault is essential. You'll want to include documentation and any information you've gathered, such as witness statements or police reports.
If you've been in an accident and filed a claim with your insurance company, you may have received a subrogation letter. This document allows the insurance company to pursue a claim against a third party that caused damage to their insured, after the insurance company has paid out a claim to the insured.
When you file a claim, your insurer can try to recover costs from the person responsible for your injury or property damage. This is known as subrogation. For example: Your insurance company pays your doctor for your treatment following an auto accident that someone else caused.