Subrogation Agreement Template for Denmark

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Key Requirements PROMPT example:

Subrogation Agreement

I need a Subrogation Agreement under Danish law for our insurance company to pursue recovery rights against a construction contractor following a major water damage claim payment of 2.5M DKK to our commercial property policyholder in March 2025.

What is a Subrogation Agreement?

The Subrogation Agreement is a crucial document in Danish insurance practice, used when an insurer has paid a claim to its insured and seeks to recover the paid amount from a third party responsible for the loss. This document type is commonly employed across various sectors in Denmark, from property insurance to professional liability claims. The agreement must comply with Danish insurance law, particularly the Forsikringsaftaleloven, and should clearly document the transfer of rights, the scope of the subrogation, and the obligations of all parties involved. It typically includes details of the original claim, the amount paid, and the rights being transferred, while ensuring alignment with Danish legal principles and procedural requirements. The agreement serves as the foundation for any subsequent recovery actions the insurer may take against third parties.

What sections should be included in a Subrogation Agreement?

1. Parties: Identification of the parties to the agreement, including the subrogating party (typically the insurer) and the party receiving the subrogation rights

2. Background: Context of the original claim, insurance coverage, and reason for subrogation

3. Definitions: Key terms used throughout the agreement, including 'Claim', 'Rights', 'Proceeds', etc.

4. Subrogation Rights: Detailed description of the rights being transferred, including scope and limitations

5. Consideration: Details of any payment or consideration for the transfer of rights

6. Representations and Warranties: Statements about the validity of the claim and rights being transferred

7. Obligations of the Parties: Specific duties of each party in relation to the subrogated claim

8. Enforcement Rights: Powers granted to pursue and enforce the subrogated claim

9. Costs and Expenses: Allocation of costs related to pursuing the subrogated claim

10. Notices: Process for formal communications between parties

11. Governing Law and Jurisdiction: Confirmation of Danish law application and jurisdiction for disputes

What sections are optional to include in a Subrogation Agreement?

1. Multiple Claims Provisions: Required when the subrogation involves multiple underlying claims or incidents

2. Cross-Border Provisions: Needed when the underlying claim involves international elements

3. Confidentiality: Required when sensitive commercial information is involved

4. Third Party Rights: Needed when other parties may have interests in the subrogated rights

5. Currency Provisions: Required for international claims involving multiple currencies

6. Insurance Policy References: Detailed references to relevant insurance policies when multiple policies are involved

7. Dispute Resolution: Alternative dispute resolution procedures if desired as an alternative to court proceedings

What schedules should be included in a Subrogation Agreement?

1. Schedule 1 - Claim Details: Detailed description of the underlying claim including dates, amounts, and circumstances

2. Schedule 2 - Supporting Documents: List and copies of relevant documentation supporting the claim

3. Schedule 3 - Insurance Policy Details: Relevant excerpts or details from the insurance policy giving rise to subrogation rights

4. Schedule 4 - Payment Details: Banking and payment information for any monetary transfers

5. Schedule 5 - Power of Attorney: If required, formal authorization to pursue the claim

6. Appendix A - Claim Timeline: Chronological sequence of events related to the claim

7. Appendix B - Related Correspondence: Copies of relevant correspondence relating to the original claim

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Relevant Industries

Insurance

Financial Services

Banking

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Construction

Manufacturing

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Relevant Teams

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Claims

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Compliance

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Corporate Affairs

Insurance

Underwriting

Relevant Roles

Legal Counsel

Claims Manager

Insurance Underwriter

Risk Manager

Compliance Officer

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Recovery Specialist

Subrogation Manager

Legal Director

Insurance Operations Manager

Policy Manager

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