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Insurance Question

Discussion in 'Business Fundamentals' started by bskiball, Sep 16, 2010.

  1. bskiball

    bskiball Member
    Messages: 64

    This was in a RFP and not sure what it means. If anyone can help that would be great.

    "All insurances shall contain a provision allowing insured to waive subrogation rights against other parties prior to loss"

    Thanks in advance.
     
  2. pohouse

    pohouse Senior Member
    Messages: 322

    Once an insurance company has provided benefits to you, such as paying a claim, you must give the insurance company "subrogation rights." This means you give up your personal right to sue negligent third parties for compensation. This allows the insurance company to recover damages from the negligent third party. In other words, if your insurance company pays you for damages incurred in an accident which was not your fault, you give them the right to sue the party at fault.
     
  3. pohouse

    pohouse Senior Member
    Messages: 322

    The owner of the RFP wants your insurance to give up the right to take action against a third party for a loss suffered by an insured. At least that's how I read it. Always a good idea to check with your agent, sometimes this legal stuff varies by state.
     
  4. bskiball

    bskiball Member
    Messages: 64

    Makes a little more sense. Its to bad everyone has to be sueing eveyone. What ever happended to honesty and taking repsonsibility for your own actions?
     
  5. hoskm01

    hoskm01 Senior Member
    from AZ
    Messages: 475

    Greed......
     
  6. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    Insurance..