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Post-loss settlement bars insurer’s subrogated action

Thursday, May 17, 2018 @ 8:35 AM | By Alex Reyes

In insurance law, subrogation refers to an insurer’s right to sue the party responsible for causing a loss to an insured in order to recover money paid out to its insured to satisfy a claim. Since a subrogating insurer is limited to enforcing only such rights its insured has against the party that caused the loss, problems can arise when an insured settles its uninsured losses with the tortfeasor and provides a general release of liability. In such circumstances, is the insured’s post-loss settlement effective to...