I. TRANSFER OF THE RIGHTS OF RECOVERY AGAINST OTHERS TO US
This condition provides the details of how the insured's rights of recovery against another party (including another insurance company), transfer to the insurance company once it pays the insured for loss or damage. This is sometimes referred to as subrogation.
If the insured or any other covered party has rights of recovery against another entity, those rights transfer to the company at the time it pays the insured or the covered party. The rights transferred apply only to the extent of the payment the company made.
The party that receives payment must do everything necessary to secure and protect the company's rights. This includes making sure that those rights are not impaired after a loss.
If the insured waives its rights of recovery against another party, the insurance company can refuse to pay its claim for loss or damage. This is not an absolute because the insured can waive its rights most of the time. However, such waivers must be in writing and be executed prior to any loss. The only really restricted time to waive rights is following a loss. However, they may still be waived if the party is:
Covered by this insurance
A business entity the named insured owns or controls
An entity that owns or controls the named insured
The named insured's tenant
Related Court Cases:
Mutual Subrogation Waiver Clause Barred Recovery by Property Owner's Insure
Subrogation Held Barred by Insurance Agreement between Landlord and Tenant
Broad Subrogation Clause Waives All of Insurer's Rights
Waiver of Subrogation Applies To All Losses
