What is the term used when an insured transfers their rights against another party to their insurer?

Subrogation refers to the process where an insurer, after paying a claim to the insured, acquires the right to pursue recovery of the amount paid from the party responsible for the loss or damage. This legal principle allows the insurer to "step into the shoes" of the insured, enabling them to recover costs from third parties that may have caused the loss. It serves to prevent the insured from receiving a double recovery and ensures that the responsible party bears the cost of the damage.

In contrast, assignment refers to a policyholder transferring their rights and duties under an insurance policy to another party, while transfer of interest involves the rights related to an insurance contract being transferred due to a sale of property or change in ownership. Indemnification involves compensating someone for a loss or damage but does not inherently involve the transfer of rights against another party. Thus, the focus on subrogation specifically aligns with the context of transferring the insured's rights to their insurer.