Subrogation -FAQs

Subrogation is a legal concept that provides relief when an insurance company is obligated to pay a legal obligation that should be fulfilled by the at-fault party. Essentially, subrogation places the insurance company in the legal position of its insured (who it compensated).

The insurance company can then go after the person who made the mistake or was negligent.  This way, the insurance company  can make sure they get paid back.

When do subrogation rights kick in?

Subrogation rights usually don’t kick in until the whole debt is paid off or taken care of by the person who stepped in (subrogee). If you only pay a little bit or get a small part of what you owe, you don’t get subrogation rights. So, a subrogator can’t go after the money or benefits the creditor has until the creditor gets everything they want. The subrogor needs to be fully paid off before the subrogee can get anything back from the person who did something wrong (tortfeasor). If an insurance company pays the whole insurance amount, but the person who got hurt actually lost more than what the insurance company paid, the insurance company can’t go after the person who did something wrong unless the person who got hurt and the insurance company agree to settle. And if the first person who did something wrong (tortfeasor) agrees to pay the person who got hurt, but the person who got hurt still has the right to sue other people who did something wrong, that agreement can’t give the insurance company any rights to go after those other people.

Waiver by an Insurer may provide a defense to insurance subgroation

In Florida, an insurer becomes a “volunteer” when they settle a claim for an insured person. But, they can still deny liability and ask other insurers to pay them back. So, if an insurer doesn’t agree to keep their right to indemnify or say they’re not at fault, they can’t take back the money they paid out.But, an insurance company can still take back the money they paid out if they keep saying the insured person is at fault and want the other insurer to pay them back.

Orlando area subrogation defense lawyer

A complaint for subrogation is a serious matter. While it’s true that you could go to jail for not paying a debt or a judgment, if you don’t pay a debt or if a judgment is entered against you, this information can be reported to credit bureaus and become part of your credit history. This information can stay on your credit reports for up to seven years. So, if you’ve been served with a complaint for subrogation, it’s important to get a skilled defense lawyer right away.  Contact Orlando area insurance subrogation defense lawyer Andrew J. Pascale today at 877-667-1211 if you’re a defendant in a subrogation case to protect your legal rights.