Document background
A Subrogation Agreement becomes necessary when an insurance company or similar entity pays a claim on behalf of an insured party and wishes to recover these costs from the responsible third party. This document, governed by U.S. federal and state laws, establishes the legal framework for such recovery efforts. The agreement typically details the original loss, payment made, and specific rights being transferred. It's particularly important in insurance claims, healthcare reimbursements, and property damage cases where multiple parties may have recovery rights.
