Can and will my own insurance sue me

I recently signed a civil compromise that was worded in a way that my insurance
feels they can no longer get the money from the responsible party and are now
threatening that the check I received as inconvenience money should go to them.
An that if I don’t give it to them they will sue me.

Asked on October 5, 2017 under Insurance Law, Oregon


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Yes, they most likely can do this. Insurers have a right to recover what they pay out to their insured from the other side, assuming the other side was at fault; that right is called their right to "subrogation." You do not have the legal right take away the insurer's right to compensation. If you improperly did so, they can look to recover from you the money they would otherwise have been able to recover from the other side.

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