Section 7.2 Common Circumstances Giving Rise to Subrogation Rights

• Library: Insurance Practice 2015

The most common situation that gives rise to a subrogation claim in the insurance context is when an insured sustains damage to a motor vehicle as a result of a negligent third party. The insured’s collision carrier will pay for the repair of the damage to the vehicle less the deductible and, under the terms of the standard automobile insurance policy, will become subrogated to the insured’s claim against the negligent third party.

The insurance company will either take an assignment of the entire claim or a subrogation receipt from the insured. The difference between an assignment of a claim and subrogation to a claim was addressed by the Missouri court of appeals in Holt v. Myers, 494 S.W.2d 430 (Mo. App. E.D. 1973). See alsoRust v. Hammons, 929 S.W.2d 834 (Mo. App. W.D. 1996).

In Missouri...