Indiana Code

Ind. Code § 27-7-5-6 (2026)

Subrogation

✓ current as of May 2026
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     Sec. 6. (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.

 

IC 27-7-5.1Chapter 5.1. Miscellaneous Motor Vehicle Insurance Provisions

 

           27-7-5.1-1"Financial responsibility"
           27-7-5.1-2"Motor vehicle insurance policy"
           27-7-5.1-3"Noneconomic damages"
           27-7-5.1-4"Uninsured motorist with a previous violation"
           27-7-5.1-5Prohibition on payment of noneconomic damages
           27-7-5.1-6Application of prohibition
           27-7-5.1-7Expired

 

Notes of Decisions
Cited in 17 cases (1 in the last 5 years), 1989–2025 · leading case: Farm Bureau Ins. Co. v. Allstate Ins. Co., 765 N.E.2d 651 (Ind. Ct. App. 2002).
Farm Bureau Ins. Co. v. Allstate Ins. Co., 765 N.E.2d 651 (Ind. Ct. App. 2002). · cites it 6× “Indiana Code section 27-7-5-6, the statute on which the parties premised their *656 actions in this case, reads, in pertinent part, as follows: (a) The policy or endorsement affording the coverage specified in this chapter may also provide that payment to any person of sums as…”
Peele v. Gillespie, 658 N.E.2d 954 (Ind. Ct. App. 1995). · cites it 6× “I.C. § 27-7-5-6(a). As a result, most insurance policies contain subrogation clauses which provide that onee an insured receives payment from the tortfeasor, the insurer has a right to reimbursement for the amount of benefits it previously paid to its insured.”
Ansert Mech. Contractors, Inc. v. Ansert, 690 N.E.2d 305 (Ind. Ct. App. 1997). · cites it 4× “Pursuant to Ind.Code § 27-7-5-6, a UIM carrier is required to advance the tentative settlement amount to the insured to preserve its subrogation rights against the tortfeasor.”
Hornberger v. Farm Bureau Ins., 868 N.E.2d 1149 (Ind. Ct. App. 2007). · cites it 4× “Indiana Code § 27-7-5-6(b). To interpret the meaning of the above statute, we apply statutory construction as follows.”
Kral v. Am. Hardware Mut. Ins. Co., 784 P.2d 759 (Colo. 1989). “755a(4) § 143(4) (1989); Ind.Code § 27-7-5-6 (1986); Iowa Code § 516A.”
Farm Bureau Ins. Co. v. Allstate Ins. Co., 770 N.E.2d 859 (Ind. Ct. App. 2002). · cites it 2× “A policy limits offer properly made and accepted pursuant to section 27-7-5-6 still operates to release the tortfea-sor if a lawsuit is not timely filed.”
State Farm Mut. Auto. Ins. Co., Alan Steady v. Richard Kern, 976 N.E.2d 716 (Ind. Ct. App. 2012). · cites it 4× “Ind.Code § 27-7-5-6(a). Thus, since State Farm has a statutory right to be subrogated to the proceeds of the judgment entered against Steady, it was demonstrably injured by the judgment against Steady being deemed satisfied.”
Webster v. Pekin Ins. Co., 713 N.E.2d 932 (Ind. Ct. App. 1999). · cites it 8× “Indiana Code § 27-7-5-6 provides that once you are informed of this bona fide offer you have thirty (SO) days to either advance pay this amount to the Websters’ [sic] or give them permission to accept this offer.”
Howard v. Am. Fam. Mut. Ins. Co., 928 N.E.2d 281 (Ind. Ct. App. 2010). · cites it 2× “Rather, American Family requested that Howard's tort claim against the underin-sured driver be settled for the latter's policy limits, which was a precondition to Howard's separate underinsurance claim against American Family.”
Cincinnati Ins. Co. v. Adkins, 935 N.E.2d 190 (Ind. Ct. App. 2010). · cites it 2× “Code § 27-7-5-6 provides in pertinent part: (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…”
Johnston v. State Farm Mut. Auto. Ins., 667 N.E.2d 802 (Ind. Ct. App. 1996). “Johnston’s attorney requested State Farm’s authorization of the settlement and advised State Farm that, under Ind.Code 27-7-5-6(b), Johnston would accept the offer unless State Farm advanced the sum of $50,-000.”
Am. Fam. Ins. Grp. v. John, 777 N.E.2d 757 (Ind. Ct. App. 2002). · cites it 3× “INDIANA CODE § 27-7-5-6 provides that once you are informed of this bona fide offer you have thirty (30) days to either advance pay this amount to Mr.”
— Ind. Code § 27-7-5-6(a) — 4 cases
Farm Bureau Ins. Co. v. Allstate Ins. Co., 765 N.E.2d 651 (Ind. Ct. App. 2002). “Indiana Code section 27-7-5-6, the statute on which the parties premised their *656 actions in this case, reads, in pertinent part, as follows: (a) The policy or endorsement affording the coverage specified in this chapter may also provide that payment to any person of sums as…”
Peele v. Gillespie, 658 N.E.2d 954 (Ind. Ct. App. 1995). “I.C. § 27-7-5-6(a). As a result, most insurance policies contain subrogation clauses which provide that onee an insured receives payment from the tortfeasor, the insurer has a right to reimbursement for the amount of benefits it previously paid to its insured.”
State Farm Mut. Auto. Ins. Co., Alan Steady v. Richard Kern, 976 N.E.2d 716 (Ind. Ct. App. 2012). “Ind.Code § 27-7-5-6(a). Thus, since State Farm has a statutory right to be subrogated to the proceeds of the judgment entered against Steady, it was demonstrably injured by the judgment against Steady being deemed satisfied.”
Haas v. Auto-Owners Ins., 672 F. Supp. 2d 849 (S.D. Ind. 2009).
— Ind. Code § 27-7-5-6(b) — 6 cases
Peele v. Gillespie, 658 N.E.2d 954 (Ind. Ct. App. 1995). “I.C. § 27-7-5-6(a). As a result, most insurance policies contain subrogation clauses which provide that onee an insured receives payment from the tortfeasor, the insurer has a right to reimbursement for the amount of benefits it previously paid to its insured.”
Farm Bureau Ins. Co. v. Allstate Ins. Co., 765 N.E.2d 651 (Ind. Ct. App. 2002). “Indiana Code section 27-7-5-6, the statute on which the parties premised their *656 actions in this case, reads, in pertinent part, as follows: (a) The policy or endorsement affording the coverage specified in this chapter may also provide that payment to any person of sums as…”
Webster v. Pekin Ins. Co., 713 N.E.2d 932 (Ind. Ct. App. 1999). “Indiana Code § 27-7-5-6 provides that once you are informed of this bona fide offer you have thirty (SO) days to either advance pay this amount to the Websters’ [sic] or give them permission to accept this offer.”
Hornberger v. Farm Bureau Ins., 868 N.E.2d 1149 (Ind. Ct. App. 2007). “Indiana Code § 27-7-5-6(b). To interpret the meaning of the above statute, we apply statutory construction as follows.”
Johnston v. State Farm Mut. Auto. Ins., 667 N.E.2d 802 (Ind. Ct. App. 1996). “Johnston’s attorney requested State Farm’s authorization of the settlement and advised State Farm that, under Ind.Code 27-7-5-6(b), Johnston would accept the offer unless State Farm advanced the sum of $50,-000.”
— Ind. Code § 27-7-5-6(b)(1)(A) — 1 case
Hornberger v. Farm Bureau Ins., 868 N.E.2d 1149 (Ind. Ct. App. 2007). “Indiana Code § 27-7-5-6(b). To interpret the meaning of the above statute, we apply statutory construction as follows.”
— Ind. Code § 27-7-5-6(b)(1)(B) — 1 case
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.