“Subrogate” means “substitute.” When an insurer pays a claim on behalf of the insured it substitutes its money for that of the insured. An insurer who pays indemnity to its insured for a loss caused by the tort or other legal obligation of another is paying the debt of the insured and is entitled to all of the rights of the insured.
The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library.
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