The law of subrogration applies to indemnity. To indemnify someone is the attempt to "make them whole" again, or reimburse them for the specific losses they have incurred. Subrogation compels the guilty party to reimburse the victim, or the insurance company who paid the victim, for those specific losses. It also keeps the Insured person from profiting from a loss by only collecting from the insurance company, and/or from a lawsuit against the guilty party, up to the amount that was lost.
Life insurance is not based on indemnity, so the law of subrogation is not applicable to life insurance (except in possibly some very remote circumstances). Therefore, if a person dies from negligence, the beneficiary can collect on the life insurance policy and still collect from a lawsuit paid by negligent party.
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Life insurance is not based on indemnity, so the law of subrogation is not applicable to life insurance (except in possibly some very remote circumstances). Therefore, if a person dies from negligence, the beneficiary can collect on the life insurance policy and still collect from a lawsuit paid by negligent party.