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Simple English definitions for legal terms
doctrine of superior equities
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A quick definition of doctrine of superior equities:
The doctrine of superior equities is a rule in insurance that says an insurance company cannot recover money from someone whose rights are equal or better than the insurance company's. This means that the insurance company can only use subrogation (the right to take legal action against someone who caused the loss) if the guilty party's rights are worse than the insured person's. It's also called the "risk-stops-here" rule.
A more thorough explanation:
The doctrine of superior equities is a rule in insurance that prevents an insurer from recovering from anyone whose equities are equal or superior to the insurer's. This means that the insurer cannot seek reimbursement from someone who has an equal or greater right to the funds in question.
For example, if an insured person is injured in a car accident caused by another driver, and the insured person's insurance company pays for their medical expenses, the insurance company may seek reimbursement from the at-fault driver's insurance company. However, if the at-fault driver's insurance company can prove that their insured person also suffered injuries in the accident and has a right to the funds, the doctrine of superior equities would prevent the first insurance company from seeking reimbursement.
The doctrine of superior equities is also known as the "risk-stops-here" rule, as it places the burden of risk on the insurer rather than the insured.