Subrogation
Insurance Glossary
The right of an insurer, after paying a claim, to pursue the party that caused the loss and recover what it paid out. If the recovery succeeds the insurer may return the policyholder's deductible, in whole or in part, out of the amount collected. Policies require the policyholder to cooperate and not to sign away the right to recover, which is why settling directly with an at-fault party can create problems.
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