About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

22 La. L. Rev. 225 (1961-1962)
The Role of Subrogation by Operation of Law and Related Problems in the Insurance Field

handle is hein.journals/louilr22 and id is 235 raw text is: COMMENTS

greatly increase litigation, then the remedy would not be worth
the treatment.
In the reported cases, the courts have protected the insurer's
freedom to distribute the policy proceeds among multiple claim-
ants and have refused to permit claimants to protect a pro rata
share. Such freedom, however, could be easily abused. The in-
surer could offer a claimant the choice of accepting what the
company has to offer, or risk exhaustion of the proceeds in set-
tlements with other claimants who will accept the company's
terms. If such a practice were widespread, or if disproportion-
ate distribution were common, perhaps courts or legislatures
should provide claimants with enforceable rights in the proceeds.
However, it is submitted that there is insufficient evidence to
indicate that these practices are commonplace. There are very
few reported cases in which a claimant contests a disproportion-
ate settlement. Further, there are indications that carriers go
to some lengths to distribute the proceeds pro rata, lest claim-
ants be permitted to preserve their shares in court. Moreover,
there is a lack of agitation from text writers43 or plaintiffs' at-
torneys to change the present system of free distribution by the
insurer. If the freedom which the companies now enjoy is not
being abused, then allowing claimants enforceable interests in
the proceeds would entitle them to nothing more than they now
receive. Allowing enforceable proration under any plan thus far
suggested would serve needlessly to increase litigation in courts
whose dockets are already overcrowded.
Gerald LeVan
The Role of Subrogation by Operation of Law
and Related Problems in the Insurance Field
Subrogation accompanies payment. Payment discharges the
obligation, but the fiction of subrogation operates to continue
the existence of the rights, privileges, and powers of the former
43. Professor Keeton does not suggest commonplace abuse by the insurance
companies. He only suggests that the company's duty to the insured and its
obligations to the claimant be consistent. Id. at 28.


What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.

Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Contact us for annual subscription options:

Already a HeinOnline Subscriber?

profiles profiles most