Legal Question in Credit and Debt Law in Louisiana

Re: Subrogation

The answer to your question depends on the origins of the subrogation right, that is, whether the right arises in law or by contract. If you settle a tort claim or a claim arising in worker's compensation for which another third party may bear responsibility, the limitations period is usually one year after the first payment or loss by the insurer. Sometimes this period may run as quickly as one year after the accident giving rise to the claim. If your insurer settled a claim that it had previously contested and as to which no prior payment had been made, the insurer would have up to a year from settlement in which to seek indemnification for its loss. If the rights are contractual in nature, the statute of limitations in Louisiana may be as long as ten years.