Subrogation (Noun)
Meaning
(law) the act of substituting of one creditor for another.
Classification
Nouns denoting acts or actions.
Examples
- The insurance company exercised subrogation to pursue the liable party for damages they initially covered for their client.
- The concept of subrogation allows a mortgage lender to step into the shoes of the original creditor in case of a defaulted loan.
- In the event of a third-party payment, subrogation rights may be asserted by the paying party to recover from the party originally responsible.
- Under the principle of subrogation, the garnishee will be substituted as a creditor to attach assets of the debtor.
- If a loss is covered by an insurance policy, the insurance company may utilize subrogation to seek reimbursement from the parties ultimately responsible.