Page 19 - Life Assurance

st contact because to enforce it would mean that
its insured would not be compensated at all.

This waiver is performed by inserting a waiver
of subrogation clause in the manufacturer's
insurance policy. Such clauses are common.

An insured that acts in such a way as to
destroy or reduce the value of the insurer's right
of subrogation violates the provisions of most
subrogation clauses and forfeits all rights under
the policy.

For instance, suppose Ashraf collides with Nadi
in an automobile accident. Ashraf writes Nadi a
letter of apology and implies that Ashraf is to blame.
It is later determined that Nadi is probably negligent
and had it not been for Ashraf's statement, Ashraf's
is insurer would have been able to subrogate
against Nadi for amounts paid to Ashraf. The
insurer may deny liability to Ashraf.

Subrogation rights of the insurer cannot be
avoided by a settlement between the primary
parties after the insurer as paid under the policy.
In such a case the insurer is entitled to
reimbursement from the insured who has
received any payment from the negligent party.

The insurer is entitled to subrogation only
after the insured has been fully indemnified.

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