Document background
A Subrogation Contract is essential when an insurance company or other entity seeks to recover payments made to an insured party from a responsible third party. This document is commonly used across the United States when an insurer has compensated its policyholder for a loss and wishes to pursue reimbursement from the party that caused the loss. The contract must carefully consider state-specific insurance laws, federal regulations like ERISA and Medicare Secondary Payer Act, and relevant common law principles. It typically includes detailed provisions about the scope of subrogation rights, cooperation requirements, and recovery distribution mechanisms.
