What type of subrogation arises by operation of law?

Legal or equitable subrogation arises by operation of law when one party is substituted in place of another to pursue a legal right or claim. This typically occurs in situations where a party pays a debt or obligation on behalf of another party and thus acquires the right to recover that amount from the responsible party.

In the context of insurance, when an insurer pays out a claim to an insured, equitable subrogation allows the insurer to step into the shoes of the insured and seek recovery from third parties responsible for the loss. This principle ensures that the insured does not receive a double recovery for the same loss—once from the insurer and again from the responsible party.

This type of subrogation does not require a contractual agreement or consent from the parties involved; it naturally occurs due to statutory provisions or common law principles. Therefore, it is distinct from other forms of subrogation, such as conventional or voluntary subrogation, which do require some form of agreement or voluntary action by the parties.