When a person is injured, they will visit a hospital for treatment. A bill for their treatment will then be submitted to the person’s health insurance company for payment. The health insurer will provide payment based on the terms of the policy a person has with their insurance company. After making the payment or before payment is submitted, the insurance company may speak with the person to learn details about the incident that caused the injury. The health insurer is trying to determine if a third party could be held responsible for the incident that caused the injuries. If they believe a third party played a role in the accident, the third party may have a financial responsibility when it comes to paying their policyholder’s medical expenses. This is how the legal concept of subrogation works.
The legal concept of subrogation is one of the oldest of modern society. Historians can trace its beginnings back to the times of ancient Roman law. The concept of subrogation became part of English common law during the 1200s. Subrogation is now a major part of the insurance industry as well as the economy of the United States. It is considered part of economic justice as it provides indemnity as well as individual responsibility.
Dealing with subrogation can be complicated. Should anyone be facing such a situation, they should immediately contact an experienced attorney for assistance.