- A legal right afforded to insurers whereby an insurance company has the option to pursue remedies from a third party. For instance, in the event of a traffic accident where the fault lies in the other driver, the insurance company for the victim has the right to pursue the driver at fault for damages.
Related Terms and Acronyms
- Automobile Liability Insurance — Definition,
- Insurance coverage for damages caused in traffic collisions.
- Common Law (CL) — Acronym, Very Important,
➥ Laws developed by judges through court decisions and precedent.
- Traditional, unwritten law based on English custom.
- Defendant — Definition,
- The accused party in a lawsuit or criminal trial.
- Indemnity — Definition,
- An arrangement where one party assumes liability for another party.
- Plaintiff — Definition,
- The party who initiates a lawsuit.
- Tort — Definition,
- An act that causes harm or loss.
- Tort Law — Definition,
- Civil law or the laws that govern civil lawsuits.
- Tortfeasor — Definition,
- A party who commits a tort (a civil wrong).
- Underinsured Motorist Coverage — Definition,
- Auto insurance that covers damages when the other driver in a collision is at fault but does not have sufficient insurance coverage.
- Uninsured Motorist Coverage — Definition,
- Auto insurance that covers collision damages caused by a driver without auto insurance.
- Waiver of Subrogation (WOS) — Acronym,
- A provision that prevents an insurer from pursuing a third party for damages to insured property.