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subrogation

Pronunciación: [ˌsʌb.roʊˈɡeɪ.ʃən]

Palabra

Contexto: «legal»

(noun) subrogation is when someone takes over the rights of another person, usually in an insurance situation. It happens when an insurance company pays for damages and then has the right to collect money from the person who caused those damages.

Ejemplo

After the car accident, the insurance company used subrogation to recover the costs from the at-fault driver.

Ejemplo

Without subrogation, the insurance company would not be able to reclaim the money it spent on the claim.

Ejemplo

What does subrogation mean in an insurance policy?

Contexto: «finance»

(noun) subrogation can also describe the act of replacing one creditor's rights with those of another. This often happens when a lender pays off a loan and wants to collect the money from a different party.

Ejemplo

The bank used subrogation to take over the rights to collect the debt after paying off the loan.

Ejemplo

The process of subrogation failed when the lender could not claim any rights to the debt.

Ejemplo

Can you explain how subrogation works with creditors?

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