subrogation
/ˌsʌbrəˈɡeɪʃən/
noun
- The legal process by which one person or party takes over the rights or claims of another, often used in insurance and finance.
- The contract included a subrogation clause that allowed the bank to collect payments directly from the debtor.
- After paying the car repair bill, the insurance company exercised its right of subrogation to sue the driver who caused the accident.
- Subrogation is common in property insurance when the insurer seeks reimbursement from a third party.
Synonyms