subrogation

  • The substitution of one (the insurance company) for another (the insured) as a creditor or claimant so that the new creditor or claimant succeeds to the former’s right.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).