Section 7.5 No Subrogation Against Permissive User

• Library: Insurance Practice 2015

Although not decided, there is dicta to suggest that an insurance company cannot subrogate against a permissive user of the insured vehicle because the permissive user is generally defined as an additional insured under the policy. See Northwestern Mut. Ins. Co. v. Haglund, 387 S.W.2d 230 (Mo. App. W.D. 1965).

The “no subrogation” rule in Missouri states that “where an insurance company attempts to recover, as a subrogee, from a coinsured generally covered under the policy, whose negligent act [caused] the loss, the action must fail in the absence of design or fraud on the part of the coinsured.” Sherwood Med. Co. v. B.P.S. Guard Servs., Inc., 882 S.W.2d 160, 162 (Mo. App...