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1973 Ins. L.J. 573 (1973)
The Effect and Validity of Subrogation Clauses in Insurance Policies

handle is hein.journals/inslj35 and id is 573 raw text is: The Effect and Validity of Subrogation Clauses in Insurance Policies By URIEL PROCACCIA Subrogation clauses in all insurance policies should be disregarded, contends Dr. Procaccia. He explains his proposals for modifying legal rights involving subrogation. 1. DEFINITION OF THE PROBLEM A S A RESULT of X's driving his car negligently, Y's car was damaged. Y had a comprehensive automobile insurance policy, and his insurance company paid for the damage. The insurer may reimburse its losses by an indemnity action against X or X's liability carrier.' This result does not depend upon any specific contractual provision in X's insurance policy.2 Rather, the insurer's right of subrogation is said to be grounded on equity and justice and to be conferred by the law itself.3 Suppose, however, that Y sustained a personal injury in this same occurrence. He was hospitalized and paid his doctors' bills. He missed work, and thus, income. If these losses were also insured (for example, by Blue Cross or Blue Shield), would the carrier be equally subrogated against X or X's liability carrier? In the absence of an express contractual provision, it seems that no subrogation is maintainable.4 The equitable grounds men- tioned above pertaining to subrogation in the property lines do not 'See generally, Kimball and Davis, The Extension of Insurance Subroga- tion, 60 Michigan Law Review 841 (1962). This result is statutorily modified in several no-fault jurisdictions. However, the impact of no-fault legislation on the situation under consideration is outside the scope of this paper. ' For example, Mathews v. Aikin, 1 N.Y. 595 (1848). For example, Moser v. Conway, 45 Ariz. 463, 46 P. 2d 110 (1935); Globe and Rutgers Fire Insurance Co. v. Foil, 189 S. C. 91, 200 S. E. 2d 97 (1938). ' For example, Michigan Hospital Service v. Sharpe, -339 Mich. 357, 63 N. W. 2d 638 (1954). Subrogation Clauses

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