Retaining a Subrogation Attorney
If the subrogation claim cannot be resolved by persuasion, arbitration, or inter-company arbitration (if the responsible party is insured), the insurer must retain a attorney to bring a lawsuit to recover the amounts paid to the insured. It is the adjuster’s obligation to establish how the attorney is to be paid. Some insurers require their attorneys to represent them on a contingency fee basis. They sometimes ignore the fact that they have negotiated, on the third party side, discounted hourly rates and that it would be less expensive to retain the attorneys on an hourly basis and to collect from the responsible party.
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