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Insurance

Subrogation

Insurance subrogation is a crucial term in the world of finance. It refers to the legal process in which an insurance company recovers the amount it has paid for a loss from the party responsible for it. This process is essential as it helps mitigate the financial burden on the insurance company and ensures fairness in the distribution of losses. In simpler terms, it is the transfer of the right to collect money from the insured to the insurer. This concept plays a significant role in the insurance industry and is worth understanding in detail.
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