What is subrogation and how does it affect Rhode Island workers' compensation claims?

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Multiple Choice

What is subrogation and how does it affect Rhode Island workers' compensation claims?

Subrogation is the insurer’s right to recover benefits it has paid for a worker’s claim from the third party responsible for the injury. In Rhode Island workers’ compensation, when someone else is at fault, the insurer can pursue that third party to recover the benefits it paid, helping to prevent the worker from getting paid twice for the same loss. The worker can still have a separate third-party claim, but any money recovered from that claim generally goes first to reimbursing the insurer for benefits already paid, with any remaining funds going to the worker. This is why the correct understanding is that subrogation lets the insurer recover paid benefits from the at-fault party, reducing double recovery.

Subrogation is the insurer’s right to recover benefits it has paid for a worker’s claim from the third party responsible for the injury. In Rhode Island workers’ compensation, when someone else is at fault, the insurer can pursue that third party to recover the benefits it paid, helping to prevent the worker from getting paid twice for the same loss. The worker can still have a separate third-party claim, but any money recovered from that claim generally goes first to reimbursing the insurer for benefits already paid, with any remaining funds going to the worker. This is why the correct understanding is that subrogation lets the insurer recover paid benefits from the at-fault party, reducing double recovery.

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