Subrogation Settlement Agreement for the United States

Subrogation Settlement Agreement Template for United States

A Subrogation Settlement Agreement is a legal document used in the United States to resolve insurance subrogation claims. It establishes the terms under which an insurance company recovers payments made to its insured from a third party responsible for the loss. The agreement typically includes settlement amounts, payment terms, releases of liability, and compliance with state-specific insurance laws and federal regulations where applicable.

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What is a Subrogation Settlement Agreement?

The Subrogation Settlement Agreement is utilized when an insurance company seeks to recover funds paid to its insured from a third party responsible for the loss. This document becomes necessary after an insurer has paid a claim to its policyholder and identified a liable third party. The agreement must comply with both federal and state-specific insurance regulations, including requirements related to the made-whole doctrine and anti-subrogation statutes. It provides clarity on settlement terms, releases, and ensures all parties' rights are protected under applicable U.S. law.

What sections should be included in a Subrogation Settlement Agreement?

1. Parties: Identification of all parties involved, including insurer, insured, and third party

2. Background: Description of the original claim, insurance payment, and basis for subrogation

3. Definitions: Key terms used throughout the agreement including claim, loss, settlement amount, and released claims

4. Settlement Amount: Agreed payment amount and payment terms

5. Release: Mutual release of claims related to the incident

6. Representations and Warranties: Basic assertions about parties' authority and capacity

What sections are optional to include in a Subrogation Settlement Agreement?

1. Medicare Compliance: Required when Medicare interests are involved in the claim

2. Confidentiality: Terms regarding non-disclosure of settlement details

3. Future Medical Expenses: Provisions for handling future medical costs and ongoing treatment

What schedules should be included in a Subrogation Settlement Agreement?

1. Schedule A - Payment Details: Detailed breakdown of settlement amount and payment schedule

2. Schedule B - Original Claim Documentation: Copy of original insurance claim and payment details

3. Schedule C - Release Form: Standardized release form to be executed by parties

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

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use
Industries

State-Specific Insurance Laws: Individual state insurance codes and regulations, including anti-subrogation statutes, made-whole doctrine applications, and state-specific time limitations (statute of limitations) for subrogation claims

Federal Laws - ERISA: Employee Retirement Income Security Act provisions relating to health insurance plans and their subrogation rights

Federal Laws - Medicare: Medicare Secondary Payer Act requirements and compliance for subrogation involving Medicare beneficiaries

Federal Laws - FEHBA: Federal Employee Health Benefits Act provisions affecting subrogation rights for federal employee health plans

Made-Whole Doctrine: Common law principle requiring that an insured be fully compensated for their loss before an insurer can exercise subrogation rights

Collateral Source Rule: Common law principle preventing reduction of damages based on compensation received from sources independent of the wrongdoer

Equitable Subrogation: Common law principles governing the right of substitution of one party for another with reference to a lawful claim or right

UCC Article 3: Uniform Commercial Code provisions regarding negotiable instruments that may affect settlement payment methods

UCC Article 4: Uniform Commercial Code provisions regarding bank deposits and collections relevant to settlement payments

State Contract Laws: General state-specific requirements for contract formation, consideration, and enforcement provisions

HIPAA: Health Insurance Portability and Accountability Act requirements for protecting medical information in subrogation settlements

State Privacy Laws: State-specific privacy regulations that may affect the handling and disclosure of personal information in settlement agreements

Consumer Protection Laws: State and federal consumer protection statutes that may impact the terms and execution of subrogation settlements

Fair Debt Collection Practices Act: Federal regulations governing debt collection practices that may apply to subrogation recovery efforts

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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