Is Law Of Subrogation Applicable To Life Insurance? 
The law of subrogration applies to indemnity . To indemnify someone is the attempt to `` make them whole '' again , or reimburse them for the specific losses they have incurred . Subrogation compels the guilty party to reimburse the victim , or the insurance company who paid the victim , for those specific losses . It also keeps the Insured person from profiting from a loss by only collecting from the insurance company , and/or from a lawsuit against the guilty party , up to the amount that was lost . Life insurance is not based on indemnity , so the law of subrogation is not applicable to life insurance -LRB- except in possibly some very remote circumstances -RRB- . Therefore , if a person dies from negligence , the beneficiary can collect on the life insurance policy and still collect from a lawsuit paid by negligent party . 