Insurance subrogation laws determine how insurance companies and their policyholders recoup monies owed in the event of a personal injury claim. Utah, like most states, follows its own set of subrogation laws. While some guidelines apply for most states, Utah has specific laws in matters concerning workers' compensation, landlords and tenants and car accident claims.
Subrogation Claims
Subrogation laws apply for private insurance companies, government-funded insurance benefits and insurance coverage for federal workers. Subrogation involves an insurance company, its policyholder and a third party individual or business that causes personal injury to the policyholder. In most cases, a policyholder's insurance company covers the costs of treatment after an accident takes place and then attempts to collect reimbursement from the third party's insurer afterward. In effect, the insurance company files a subrogation claim against the third party insurer.
Workers' Compensation Claims
Utah subrogation laws involving workers' compensation claims define worker and employer rights when the actions of a third party cause injury to a worker. Much like how private insurance companies cover a policyholder's injuries, the employer may cover a worker's injuries under its workers' compensation program and then submit a subrogation claim against the third party's insurance company. These types of situations result from car accidents, product liability accidents, construction accidents or malpractice claims. In cases involving an intentional act carried out by an employer or a coworker, the injured worker may have the option of refusing workers' compensation benefits and suing the employer or coworker directly.
Landlord-Tenant Claims
With most personal injury claims, the party at fault shoulders the responsibility of reimbursing the person injured, either through his insurance company or out-of-pocket. Within the state of Utah, claims involving landlords and tenants fall under what's known as the Sutton Rule of Subrogation. Under the Sutton Rule, the law views landlords and tenants as coinsureds. As coinsureds, neither party can sue the other, which means a landlord cannot sue a tenant for damage done to the property as a result of an accident. For example, a landlord cannot sue a tenant for damage if a fire destroys one of his properties. This rule holds true, even in cases of negligence on the tenant's part.
Car Accident Claims
Utah subrogation laws involving car accident settlement claims use the PIP, or Personal Injury Protection offset rule when deciding settlement amounts for the injured party. The PIP offset allows the insurance company representing the party at fault to deduct whatever PIP benefits the claimant has already received from the settlement amount. So, if the claimant's insurance company has already paid on medical bills or lost wages, these costs come out of the final settlement amount. In some cases, a claimant may receive a settlement equal to the full policy coverage amounts available through the party at fault's insurance policy. When this happens, claimants can request that their insurer waive the PIP offset rule, meaning claimants can receive the full settlement amount without having PIP coverage costs deducted.
Tags: insurance company, third party, workers compensation, insurance companies, landlords tenants, party fault
