Insurance Subrogation Insurance subrogation is a part of many insurance contracts. If the insured suffers a loss because of the wrongful act of a third person, the insurance company may still be required to pay the insured for the loss. The insurance company may then be subrogated, or substituted, for the insured in seeking compensation from the third person who actually caused the loss. For example, a careless camper who fails to put out a campfire may cause substantial damage to a neighboring landowner. The landowner may collect from its insurance company, and the insurance company may then bring a lawsuit against the camper to collect the money it had to pay to the insured.
Life insurance pays if a party dies during the time period covered by the insurance agreement.
Health insurance pays for losses, usually medical expenses, incurred because the insured suffered an illness or injury. Insurance Malpractice Malpractice insurance is held by many professionals, such as doctors, dentists, and accountants. If a client of that professional suffers a financial injury because the professional committed malpractice, the insurer pays the client for some of the loss. Motor Vehicle Motor vehicle insurance is probably the most familiar type of insurance. Although motor vehicle insurance policies vary widely, they generally cover the owner or driver of the vehicle against the risk that the vehicle will be involved in an accident or damaged in a collision.