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From The Glossary »

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Subrogation:

The statutory or legal right of an insurer to recover from a third party who is wholly or partially responsible for a loss paid by the insurer under the terms of a policy. For example, when an insurer has paid the insured for loss sustained to his car as the result of a collision, the insurer may collect, through the right of subrogation, from the person whose car caused the damage.
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