§ 27-7-5-6 — Subrogation

(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.