When Does Subrogation Occur?
When an insurance company covers a loss that is not the fault of the insured, the carrier may pursue the carrier representing the at-fault party to recover payments made to the carriers insured. Insurance companies can only subrogate other parties if their customer is less than 50% at fault for an incident. Texas has adopted the doctrine of modified comparative negligence for tort claims. If the person bringing the claim is judged to be greater than 50% responsible for the injury, he may not recover any damages at all. If his percentage of responsibility is judged to be 50% or less, the claimant’s recovery is diminished in proportion to this percentage (Texas Civil Practice & Remedies Code § 33.001-33.017).
