subrogation

/ ˌsʌbrəˈɡeɪʃən /

noun

1. law the substitution of one person or thing for another, esp the placing of a surety who has paid the debt in the place of the creditor, entitling him to payment from the original debtor

Example Sentences

This practice is called subrogation, and the right to subrogation is important for insurers.

From Seattle Times

If Pacific Gas and Electric is unable to secure its own fate and future and work through the process of getting people together and working to address the needs of debt and equity bondholders and lawyers and victims and subrogation claims, then the state will prepare itself as backup for a scenario where we do that job for them.

From Los Angeles Times

The proposed plan will create two trusts, a $14.5 billion trust for compensating individual wildfire victims and an $11 billion trust for paying insurers with subrogation claims against PG&E for payments they had made after the blazes in 2017 and last year, according to the filing in the U.S.

From Reuters

Subrogation allows insurers to recoup funds that they have paid to policy holders for insured losses from third parties that they hold responsible for the losses.

From Reuters

“I spent a year in real estate property management until my dad introduced me to a plumbing manufacturer here in Los Angeles. I started working in-house as their claims manager. They could no longer afford to keep their insurance policy because they were having so many subrogation claims” related to water damage.

From Los Angeles Times