Indiana § 27-7-5-6 - Subrogation

§ 27-7-5-6. Subrogation

Sec. 6. (a) The policy or endorsement affording the coverage specified in this chapter may also provide that payment to any person of sums as damages under such coverage shall operate to subrogate the insurer to any cause of action in tort which such person may have against any other person or organization legally responsible for the bodily injury or death, or property damage, because of which such payment is made. The insurer shall be subrogated, to the extent of such payment, to the proceeds of any settlement or judgment that may later result from the exercise of any rights of recovery of such person against any person or organization legally responsible for said bodily injury or death, or property damage, for which payment is made by the insurer. Such insurer may enforce such rights in its own name or in the name of the person to whom payment has been made, as in their interest may appear, by proper action in any court of competent jurisdiction.

(b) An insurer providing underinsured motorist coverage does not have a right of subrogation against an underinsured motorist if:

(1) the insurer has been provided with a written notice that:

(A) informs the insurer of the existence of a bona fide offer of agreement or settlement between its insured and the underinsured motorist; and

(B) includes a certification of the liability coverage limits of the underinsured motorist; and

(2) the insurer fails to advance payment to the insured in an amount equal to the amount provided for in the offer of agreement or settlement within thirty (30) days after the insurer receives the notice described in subdivision (1).

However, an insurer that, under the circumstances described in subdivision (1), advances payment to the insured in an amount equal to the amount provided for in the offer of agreement or settlement, has full rights of subrogation as provided in its policy or endorsement affording the underinsured motorist coverage.

(c) When an insurer makes payment under uninsured motorist coverage or underinsured motorist coverage because of the insolvency of an insolvent insurer (as defined in IC 27-6-8), the paying insurer's rights of reimbursement and subrogation do not include any rights of recovery against:

(1) the insured of the insolvent insurer; or

(2) the Indiana Insurance Guaranty Association created by IC 27-6-8-5;

except that the paying insurer may recover from the insured of the insolvent insurer that part of its payment that exceeds the limits of liability of the policy of the insolvent insurer.

As added by Acts 1982, P.L.166, SEC.5. Amended by P.L.121-1990, SEC.7.

IC 27-7-5.1Chapter 5.1. Miscellaneous Motor Vehicle Insurance Provisions

27-7-5.1-1"Financial responsibility" 27-7-5.1-2"Motor vehicle insurance policy" 27-7-5.1-3"Noneconomic damages" 27-7-5.1-4"Uninsured motorist with a previous violation" 27-7-5.1-5Prohibition on payment of noneconomic damages 27-7-5.1-6Application of prohibition 27-7-5.1-7Expired

IC 27-7-5.1-1"Financial responsibility" Sec. 1. As used in this chapter, "financial responsibility" means the ability to respond in damages as described in IC 9-25-2-3.

As added by P.L.136-2015, SEC.1.

IC 27-7-5.1-2"Motor vehicle insurance policy" Sec. 2. As used in this chapter, "motor vehicle insurance policy" means a policy that provides the kind of coverage described in Class 2(f) of IC 27-1-5-1.

As added by P.L.136-2015, SEC.1.

IC 27-7-5.1-3"Noneconomic damages" Sec. 3. (a) As used in this chapter, "noneconomic damages" means costs for the following:

(1) Physical and emotional pain and suffering.

(2) Physical impairment.

(3) Emotional distress.

(4) Mental anguish.

(5) Loss of enjoyment.

(6) Loss of companionship, services, and consortium.

(7) Any other nonpecuniary loss proximately caused by a motor vehicle accident.

(b) The term does not include costs for the following:

(1) Treatment and rehabilitation.

(2) Medical expenses.

(3) Loss of economic or educational potential.

(4) Loss of productivity.

(5) Absenteeism.

(6) Support expenses.

(7) Accidents or injury.

(8) Any other pecuniary loss proximately caused by a motor vehicle accident.

As added by P.L.136-2015, SEC.1.

IC 27-7-5.1-4"Uninsured motorist with a previous violation" Sec. 4. As used in this chapter, "uninsured motorist with a previous violation" means an individual who:

(1) owns a motor vehicle:

(A) that is involved in an accident; and

(B) for which financial responsibility is not in effect as required by IC 9-25-4; and

(2) during the immediately preceding five (5) years, has been required to provide proof of future financial responsibility for any period;

regardless of whether the individual is operating the motor vehicle at the time of the accident.

As added by P.L.136-2015, SEC.1. Amended by P.L.86-2021, SEC.20.

IC 27-7-5.1-5Prohibition on payment of noneconomic damages Sec. 5. An insurer may not pay noneconomic damages on a claim for coverage under a motor vehicle insurance policy issued by the insurer if the claim is for coverage for a loss incurred by an uninsured motorist with a previous violation.

As added by P.L.136-2015, SEC.1.

IC 27-7-5.1-6Application of prohibition Sec. 6. (a) Section 5 of this chapter does not apply to a claim for coverage for a loss incurred by an uninsured motorist with a previous violation who is less than eighteen (18) years of age.

(b) Section 5 of this chapter does not apply to a claim for coverage for a loss incurred by any person other than an uninsured motorist with a previous violation.

(c) Section 5 of this chapter does not apply if a person other than the uninsured motorist with a previous violation:

(1) operates a motor vehicle involved in the accident; and

(2) is convicted of a crime in connection with the accident.

As added by P.L.136-2015, SEC.1.

IC 27-7-5.1-7ExpiredAs added by P.L.24-2017, SEC.5. Expired 12-31-2019 by P.L.24-2017, SEC.5.

IC 27-7-6Chapter 6. Cancellation of Automobile Insurance Policies

27-7-6-0.5Applicability 27-7-6-1Limitations on power of issuance, cancellation, and nonrenewal 27-7-6-2"Automobile insurance policy", "automobile liability coverage", and "policy" 27-7-6-3"Renewal" or "to renew" defined 27-7-6-4Notice of cancellation; authorized reasons 27-7-6-5Notice of cancellation 27-7-6-6Notice of nonrenewal 27-7-6-7Proof of mailing notice 27-7-6-8Notice of possible eligibility under assigned risk plan 27-7-6-9Compliance with request for reason for cancellation or nonrenewal; time limits 27-7-6-10Exemption from liability for statements made in giving reasons for cancellation or nonrenewal 27-7-6-11Dispute as to truth of reason for cancellation; hearing; findings; effect; fee 27-7-6-12Person with a disability; automobile policy