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.In Virginia state law bars subrogation in health insurance policies. That state law is superceded by the federal ERISA statute to the extent that health policies are employer based.If your health insurabce is through your employment there may be a right of subrogation. The policy needs to be carefully looked at to make sure it complies with the federal requirements.
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.Policies that typically have subrogation clauses are health insurance policies and liability policies.This can extend to professional liability policies such as malpractice policies.
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.