The right of subrogation allows an insurer to institute suit against the responsible third party in the name of the insured to collect amounts paid by the insurer to the insured.

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Subrogation is a legal right that allows an insurer to pursue a third party that caused an insurance loss to the insured. This is done to recover the amount of the claim paid by the insurance company to the insured for the loss.

The Right of Subrogation Allows an Insurer to Institute Suit