introduction to subrogation & how it impacts you

INTRODUCTION TO SUBROGATION& How It Impacts You

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OR

Mari Beth Jackson

Vice President, Subrogation

June 25, 2015

Subrogation



What Is Subrogation?

Definition• To subrogate: "to put in the place of another; esp: to substitute for

another with regard to a legal right." Webster's Collegiate 10th ed.

In our policy• POLICY: TRANSFER OF RIGHTS OF RECOVERY AGAINST

OTHERS TO US: If any person or organization to or for whom we make payment under this Coverage Form has rights to recover damages from another, those rights are transferred to us. That person or organization must do everything necessary to secure our rights and must do nothing after "accident" or "loss" to impair them.



Philosophy

• Subrogation is a priority at the beginning of all claims



We STRESS Subrogation BIG TIME

At least four good reasons:

•$$$$

•Marketing

•Valuable Service

•Societal Interest



We All Need To Work Together

Reasons

• Investment

• Coaching

• Understanding



Organizationally Speaking

Regional subrogation staff

• Specialization

• Integration



Who is Great West and what industry are we really in?



Where Do We Find Subrogation Opportunities?

• Motor vehicle accidents

• Nonvehicular accidents

• Fires

• Mechanical, product failures

• Thefts

• Negligent bailments



Workers’ Compensation

Subrogation



Animals On the Road



What Kind of Dollars Can We Recover?

Great West subrogation

•Physical damage claims

•Cargo claims

•Workers’ compensation claims

•Liability claims

Insured’s damages



Insured’s Damages

• Deductibles

• Downtime

• Other uninsured losses

• Motel bills

• Mileage

• Rental car or taxi

• Meals



Courtesy Subrogation

• Under deductibles

• Uninsured losses

• Not bodily injury claims

• Not file suit



Downtime



Downtime

• Mitigation

• Rental versus loss profits

• Worksheet handout

• Supporting documentation



There Are Two Roads - Which Will It Be?

• Route A – “Dealing directly with an adverse carrier”

• Route B – “Going through your coverage with GWCC”

• Haste can make waste



Subrogation Personnel Involvement

• Investigation

• Communications with insured, adverse party/insurer

• Coordination of damages with insured

• Presentation of claims



Subrogation Personnel Involvement (continued)

• Negotiation

• Litigation

• Economic Realities



What Our Insureds (Drivers) Can Do:

At the accident site:

• Get information from the other driver(s): name, address, phone, employer, insurance policy information

• Take photos of the vehicles before moving, point of impact, other vehicle's license plate, damage. If involves cow/horse on the road take photos of animal, ear tags, brands, and any downed fence in the area, or open gates

• Write down witness(es) name, address, phone, and employer

• Call GWCC and report accident ASAP



What Our Insureds (Drivers) Can Do:

After they leave the accident site:• Keep written copies of all accident related expenses, such

as motel bills, tows, transportation bills

• Keep log of mileage for accident related trips, date, distance, reason for trip

• Try to rent a replacement vehicle and keep a list of all places called, who they spoke to and the and reason they could not rent

• Fill out the downtime calculation sheet accurately based on actual days on the road and NET income and send to GWCC with supporting documentation. Be prepared to defend your calculations. The adverse adjusters will have questions!



Disbursement of Subrogation $$

• Full recovery

• Partial recovery

• Prorating recovery

• SIR accounts



Hurdles to Subrogation

• Liability facts• Comparative Fault• Law

• Damages recoverable• Total loss limitation• Claims against a governmental entity

• No one to subrogate against• No insurance• Policy limits• No supporting documents for downtime• No assets• Draw a counter claim



Minimum Levels of Required Auto Insurance

Alabama 25/50/25

Alaska 50/100/25

Arizona 15/30/10

Arkansas 25/50/25

California15/30/5

Colorado 25/50/15

Connecticut 20/40/10

Delaware 15/30/10

Florida 10/20/10

Georgia 25/50/25

Hawaii 20/40/10

Idaho 25/50/15

Illinois 20/40/15

Indiana 25/50/10

Iowa 20/40/15



Minimum Levels of Required Auto Insurance

Kansas 25/50/10

Kentucky 25/50/10

Louisiana 10/20/10

Maine 50/100/25

Maryland 20/40/15

Massachusetts

20/40/5

Michigan 20/40/10

Minnesota 30/60/10

Mississippi 25/50/25

Missouri 25/50/10

Montana 25/50/10

Nebraska 25/50/25

Nevada 15/30/10

New Hampshire 25/50/25

New Jersey 15/30/5



Actual Cash Value At Time Of Loss - $72,000



Litigation

• Contingency Fee

• Expenses

• Counterclaim

• Hurdles



Questions?

UPCOMING EVENTS

THANK YOU.

introduction to subrogation & how it impacts you

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