In the event of a claim being paid, who has the right of subrogation according to the policy?

Subrogation refers to the right of an insurer to step into the shoes of the insured after a loss has been paid. In the context of a title insurance policy, when a claim is paid, the insurance company obtains the right of subrogation, meaning it can pursue recovery from third parties responsible for the loss.

This process allows the insurance company to reclaim some or all of the funds it paid out on the claim, thereby reducing its own losses. By having the right of subrogation, the insurance company can investigate and potentially litigate to recover what it has compensated to the insured. This mechanism also serves to deter wrongful behavior by parties that may have caused the title defect or issue that led to the claim.

Other parties, such as the insured or the mortgage holder, typically do not have the right of subrogation upon the insurer making a payment. Instead, they may be the recipients of the payment but do not gain the rights to recover funds from third parties as a result of that payment. The personal representative of an estate generally deals with the estate's affairs and would not have a direct role in subrogation related to a title insurance policy. Thus, the insurance company’s right of subrogation is crucial for managing the financial