In subrogation, what is generally required of the insured?

In subrogation, what is generally required of the insured?

• A. The insured typically must cooperate with the insurer in recovering payment through subrogation, but is not required to testify or appear in court.
• B. Most policies require the insured to cooperate with the insurer in recovering payment through subrogation, to include testifying or appearing in court.
• C. The insured is typically under no obligation to cooperate with the insurer in recovering payment through subrogation.
• D. All policies require the insured to cooperate with the insurer in recovering payment through subrogation.

Answer: (B)

Cooperation is essential in subrogation. After the insurer pays a claim, it efforts to recover those funds from the party at fault, and the insured’s cooperation helps establish facts and support the recovery process. Most insurance policies include a cooperation clause that requires the insured to assist the insurer with subrogation, which can include providing information, signing forms, and, when necessary, testifying or appearing in court. Because testifying or appearing in court is often reasonably necessary to pursue recovery, that aspect is included in the typical obligation. Statements that there is no obligation or that all policies impose the same requirement overstate the rule; variations exist, but the general expectation is for cooperation, and failing to cooperate can jeopardize recovery or affect rights under the policy.

Cooperation is essential in subrogation. After the insurer pays a claim, it efforts to recover those funds from the party at fault, and the insured’s cooperation helps establish facts and support the recovery process. Most insurance policies include a cooperation clause that requires the insured to assist the insurer with subrogation, which can include providing information, signing forms, and, when necessary, testifying or appearing in court. Because testifying or appearing in court is often reasonably necessary to pursue recovery, that aspect is included in the typical obligation. Statements that there is no obligation or that all policies impose the same requirement overstate the rule; variations exist, but the general expectation is for cooperation, and failing to cooperate can jeopardize recovery or affect rights under the policy.