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Simple English definitions for legal terms
subrogee
Read a random definition: subjacent
A quick definition of subrogee:
Term: Subrogee
Definition: A subrogee is someone who takes over the rights of another person (called subrogor) by paying their debts or expenses related to a claim. This usually happens when an insurance company pays a claim on behalf of their customer and then has the right to sue the person who caused the damage. Another example is when a guarantor pays off a debt and then has the right to go after the person who owed the money instead of the original creditor.
A more thorough explanation:
Subrogee
Subrogee is a person or entity that obtains the rights of another person or entity (known as the subrogor) through subrogation. This typically occurs when the subrogee pays the debts or expenses of the subrogor in connection with a claim against a third party. For example, an insurance company may become a subrogee after paying an insurance claim, giving them the right to sue the person who caused the insured's injury. Another example is when a guarantor becomes a subrogee after paying off a debt to a creditor, allowing them to assert their rights against the debtor instead of the creditor.
- An insurance company becomes a subrogee after paying a claim for a car accident caused by another driver. They can then sue the driver to recover the money they paid out to their insured.
- A bank that guarantees a loan becomes a subrogee if they have to pay off the loan because the borrower defaults. They can then go after the borrower to recover the money they paid to the lender.
These examples illustrate how a subrogee can step into the shoes of the subrogor and assert their rights against a third party. By paying the debts or expenses of the subrogor, the subrogee gains the right to pursue legal action to recover the money they paid out.