Subro Fundamentals
This is the process by which an insurer seeks reimbursement from the party responsible for an auto accident.
What is subrogation?
After a rear-end collision, the insurer may pursue subrogation against this party.
Who is the driver who rear-ended the insured?
This legal doctrine requires the insured to be fully compensated before the insurer can subrogate.
What is the “made whole” doctrine?
This process allows insurers to resolve subrogation disputes without going to court.
What is arbitration?
The legal right of an insurer to recover the amount paid on a claim from the at-fault party.
What is the right of recovery?
Subrogation may be complicated if this type of driver is involved and lacks insurance.
Who is an uninsured motorist?
Some states use this system to assign fault percentages in auto accidents.
What is comparative fault (or comparative negligence)?
Subrogation may be impacted if the insured accepts this from the at-fault party before the insurer pays the claim.
What is a settlement (or release of liability)?
This type of insurance coverage often triggers subrogation after a collision.
What is collision coverage?
If a faulty traffic signal causes an accident, the insurer may pursue subrogation against this entity.
Who is the municipality (or city/government agency)?
This type of alternative dispute resolution is commonly used in subrogation disputes.
What is arbitration (or mediation)?
This type of evidence, often found at the scene, can help establish liability in subrogation claims.
What is physical evidence (such as debris, skid marks, or vehicle parts)?
The insured must avoid signing this type of agreement with the at-fault party, as it may waive subrogation rights.
What is a release of liability (or waiver of subrogation)?
In a multi-vehicle accident, subrogation may be affected by this type of liability.
What is comparative negligence (or shared liability)?
This federal law may affect subrogation when a government vehicle is involved in an accident.
What is the Federal Tort Claims Act?
If a rental car is damaged, subrogation may be affected by this clause in the rental agreement.
What is a waiver of subrogation clause?
This document, often required by the insurer, assigns the right to pursue recovery to the insurance company.
What is an assignment of rights (or letter of authorization)?
If a defective tire causes an accident, the insurer may subrogate against this company.
Who is the tire manufacturer?
The insurer must avoid this action, which could jeopardize their subrogation rights.
What is settling or releasing the at-fault party’s liability?
This organization provides a platform for insurers to arbitrate subrogation claims.
What is Arbitration Forums, Inc.?