California Subrogation Agreement between Insurer and Insured is a legal document that outlines the rights and responsibilities of both the insurance company and the policyholder when it comes to subrogation claims. Subrogation refers to the process through which an insurance company recovers the cost of a claim from a third party who may be responsible for the loss or damages. In California, there are two main types of Subrogation Agreements between Insurer and Insured: 1. First-party subrogation agreement: This type of agreement is entered into when the insurance company seeks to recover the amount it paid for a claim directly from the party responsible for the loss. For example, if an insured vehicle is involved in an accident caused by another driver, the insurance company may seek reimbursement from the at-fault driver's insurance company. 2. Third-party subrogation agreement: This type of agreement is relevant when the insurance company pays a claim to its insured, and then seeks recovery from a third party who may have caused the loss or damages. For instance, if a policyholder's house is damaged by a faulty electrical appliance manufactured by a third party, the insurance company may seek reimbursement from the appliance manufacturer. The California Subrogation Agreement between Insurer and Insured typically includes the following key elements: 1. Identification of the parties involved: The agreement establishes the identities of the insurance company and the insured individual or entity. 2. Description of the insurance policy: The agreement specifies the insurance policy number, type of coverage, and the period of coverage. 3. Subrogation rights and obligations: The agreement outlines the rights and obligations of both the insurer and the insured regarding subrogation. It details the circumstances under which the insurer can pursue subrogation, the steps involved in the subrogation process, and any limitations or restrictions that may apply. 4. Release of claims and cooperation: The insured agrees to release all claims and rights to recovery against the responsible third party and pledges full cooperation with the insurer during the subrogation process. 5. Recovery and reimbursement: The agreement sets forth the terms under which the insurance company will share any recovered funds with the insured, including any deductibles or expenses incurred. 6. Indemnification: The insured often agrees to indemnify and hold the insurance company harmless from any claims made by the responsible third party. 7. Governing law and dispute resolution: The agreement specifies that it will be governed by the laws of California and outlines the process for resolving any disputes that may arise. It is crucial for both the insurer and the insured to carefully review and understand the provisions of the California Subrogation Agreement before signing, as it can have significant implications on their rights, responsibilities, and financial obligations.