When you’ve been injured in an accident and someone else is at fault, the process of getting compensated can be complex. Insurance companies, medical providers, and even your own health insurer may have a financial stake in your recovery. One key legal concept that often comes into play is subrogation. At Reeves Law Firm, we believe it’s critical for injury victims in Arkansas to understand how this principle can affect their settlement or judgment.
What Is Subrogation?
Subrogation is the legal right of a third party, usually an insurance company, to be reimbursed for money it paid on your behalf if you later recover that money from the person or entity that caused your injury.
For example:
- If your health insurance pays $10,000 for your accident-related medical bills, and then you receive a $50,000 settlement from the at-fault party, your insurer may assert a subrogation claim for reimbursement of that $10,000.
The rationale behind subrogation is to prevent double recovery. In other words, Arkansas law and an insurance company may determine that an injured person shouldn't be compensated twice for the same damages—once by your insurer and again by the liable party.
How Does This Work in Practice in Arkansas?
Arkansas courts and specific legislation have determined that an insurance company that pays out on your behalf may seek restitution of the amount they paid out if you receive all damages and compensation that you are entitled to receive, a concept known as “made whole.” Please also read our article titled “Explanation of the Made Whole Doctrine in Arkansas.”
Can Subrogation Be Waived by an Insurance Company?
Yes-an insurance company can waive their rights to seek subrogation from the injured party that has been made whole or from the at-fault party, as the case may be.
Why This Matters for Injury Victims
If you’ve been injured due to someone else’s negligence and are facing claims from your insurer for reimbursement, subrogation, then you need to adamantly protect your rights. Unfortunately, insurers often assert subrogation rights aggressively- sometimes without regard to whether you’ve actually been made whole.
At Reeves Law Firm, we work to ensure that accident victims in Arkansas receive fair treatment. We review insurance contracts, negotiate with insurers, push back on an insurance company’s attempt to enforce subrogation against you, and fight to enforce the made whole doctrine when appropriate.
Understanding your rights under the made whole doctrine and the concept of subrogation can significantly impact how much compensation you ultimately take home after an injury. Don’t let insurers take more than they’re entitled to.
If you or a loved one has been injured and you’re facing a subrogation claim, contact Reeves Law Firm today. We’re here to protect your recovery and advocate for your best interests every step of the way.
Located in Batesville, Melbourne, and Heber Springs, Arkansas, and serving all of Arkansas, Reeves Law Firm stands ready to handle any civil, estate, family law, guardianship, personal injury, probate, or any other litigation matters that may arise.
Reeves Law Firm primarily serves Independence County (Batesville), Jackson County (Newport), Sharp County (Ash Flat, Highland, Cherokee Village), Lawrence County (Walnut Ridge), Cleburne County (Heber Springs, Greers Ferry, Fairfield Bay), Izard County (Melbourne), Stone County (Mountain View), White County (Searcy), and Baxter County (Mountain Home).
Give us a call in Batesville, Arkansas, at (870) 793-0021
Give us a call in Heber Springs, Arkansas, at (501) 302-8383
Give us a call in Melbourne, Arkansas, at (870) 291-9374
We are Attorneys in Arkansas – Expect Professional. Expect Results.