A-25, r. 4 - Direct Compensation Agreement for the Settlement of Automobile Claims

Section 11 Disposition versions

2012-09-01

11. Automobile liability insurers are subrogated in the rights of their own insureds against all third parties at fault, whether insured or not, to the extent of the payments made by them.

However insurers waive subrogation against each other except in the following situations:

(a)  any settlements made with the owners of vehicles in the care, custody and control of the following persons:

i.  any garage operator or his employees;

ii.  any parking lot operator or his employees;

iii.  any motor vehicle dealer referred to in the Highway Safety Code (chapter C-24.2) or his employees;

iv.  any towing business operator;

(b)  any settlement with the owner of a towed vehicle;

(c)  any settlement with the owner of an automobile exempted, other than those provided for in section 11 b, except if such automobile is insured under an automobile liability policy.

In subparagraphs a and b, subrogation can be exercised only against the insurer of the operator of a customer’s vehicle under his care, custody and control or of the operator of a tractor towing such a vehicle.

Decision 2007-03-27, s. 11.