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Subrogation Agreement Template for New Zealand

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Key Requirements PROMPT example:

Subrogation Agreement

"I need a Subrogation Agreement under New Zealand law for my insurance company to pursue recovery rights against a third-party logistics company following a NZD 500,000 payment for damaged cargo in March 2025."

Document background
The Subrogation Agreement is a crucial document in New Zealand insurance practice, used when an insurer has paid out a claim and seeks to recover the paid amount from a third party responsible for the loss. This document is essential in situations where an insurance company has compensated their insured for a loss and wishes to exercise their right to pursue recovery against the responsible party. The agreement must comply with New Zealand's insurance regulatory framework, including the Insurance Law Reform Act 1977 and the Contract and Commercial Law Act 2017. It typically includes detailed provisions about the original insurance claim, the payment made, and the rights being transferred. The document is particularly important in complex insurance claims where significant sums are involved or where multiple parties may share responsibility for the loss.
Suggested Sections

1. Parties: Identifies and defines the parties to the agreement - typically the insurer, the insured, and any other relevant parties

2. Background: Sets out the context of the agreement, including details of the insurance policy, the loss event, and the payment made by the insurer

3. Definitions: Defines key terms used throughout the agreement

4. Consideration: States the consideration being provided, typically the insurance payment made or to be made

5. Assignment of Rights: Details the transfer of recovery rights from the insured to the insurer

6. Obligations of the Insured: Specifies the insured's duties to assist with recovery efforts and maintain claim integrity

7. Recovery Proceedings: Outlines how recovery proceedings will be conducted and managed

8. Distribution of Recoveries: Explains how any recovered amounts will be distributed between the parties

9. Representations and Warranties: Contains standard representations and warranties from both parties

10. General Provisions: Contains standard boilerplate clauses including governing law, notices, and amendment procedures

Optional Sections

1. Multiple Insurers: Required when multiple insurers are involved in the subrogation arrangement, detailing their respective rights and responsibilities

2. Third Party Rights: Needed when third parties have interests in the recovery rights or proceeds

3. Costs and Expenses: Detailed section on cost allocation when complex recovery efforts are anticipated

4. Confidentiality: Required when sensitive commercial information is involved

5. Dispute Resolution: Detailed dispute resolution procedures for high-value or complex cases

6. Power of Attorney: Required when the insurer needs specific authority to act on behalf of the insured

Suggested Schedules

1. Schedule 1: Insurance Policy Details: Details of the relevant insurance policy including policy number, coverage, and relevant terms

2. Schedule 2: Loss Details: Specific details of the loss event and insurance claim

3. Schedule 3: Payment Details: Details of the insurance payment made or to be made

4. Schedule 4: Recovery Rights: Detailed description of the rights being transferred

5. Appendix A: Supporting Documents: Copies of relevant documentation such as insurance policy, claim forms, and payment records

6. Appendix B: Power of Attorney (if applicable): Form of power of attorney when required

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























Clauses






























Relevant Industries

Insurance

Legal Services

Financial Services

Risk Management

Healthcare

Construction

Manufacturing

Transport and Logistics

Property Management

Professional Services

Relevant Teams

Legal

Claims

Risk Management

Compliance

Operations

Underwriting

Policy Administration

Recovery

Contract Management

Insurance Operations

Relevant Roles

Insurance Claims Manager

Legal Counsel

Risk Manager

Compliance Officer

Claims Adjuster

Insurance Underwriter

Recovery Specialist

Insurance Operations Manager

Contract Administrator

Policy Manager

Insurance Broker

Legal Risk Analyst

Claims Recovery Officer

Insurance Policy Administrator

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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