Subrogation
This is a concept wherein an insurance company may recover monies paid out to its insured under an insurance policy. For instance, if your health insurance carrier pays money to you or to your health care providers as a result of an automobile accident caused by another party then that health insurance carrier may have a right of subrogation against any proceeds that you may be entitled to from your claim against that person that caused the accident. That right of subrogation means that the insurance company can recover monies that they have paid on your behalf.
That right of subrogation can also be seen in the context of liability claims. If your liability insurance carrier pays out a claim under the uninsured motorist provision of your auto policy they may subrogate against the party deemed to be at fault by suing that party for the amount paid to you.
A subrogation clause exists in most insurance policies. To the extent it does not exist then insurance carriers may still have a right of equitable subrogation which allows the carrier to recover from the party deemed to be at fault.
