Subrogation Agreement

A Subrogation Agreement is a legal contract between an insurance company and a policyholder or claimant in which the policyholder agrees to transfer their right to recover damages from a third party to the insurance company. Subrogation is the process by which an insurance company seeks reimbursement from a third party who is responsible for causing a loss that the insurer has paid out under an insurance policy. The subrogation agreement typically specifies the terms and conditions under which the insurer can pursue recovery, including the allocation of any recovered funds between the insurer and the policyholder.