Meaning of the word subrogation in English

What does subrogation mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

subrogation

US /ˌsʌb.rəˈɡeɪ.ʃən/
UK /ˌsʌb.rəˈɡeɪ.ʃən/
"subrogation" picture

Noun

the substitution of one person or group by another in respect of a debt or insurance claim, accompanied by the transfer of the rights and duties involved

Example:
The insurance company exercised its right of subrogation after paying the claim.
The principle of subrogation prevents the insured from recovering more than their actual loss.