Acts and Regulations

I-12 - Insurance Act

Section 266
Disposition versions

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Subrogated to all rights of recovery
266(1)An insurer who makes any payment or assumes liability therefor under a contract is subrogated to all rights of recovery of the insured against any person and may bring action in the name of the insured to enforce those rights.
266(2)Where the net amount recovered whether by action or on settlement is, after deduction of the costs of the recovery, not sufficient to provide complete indemnity for the loss or damage suffered, the amount remaining shall be divided between the insurer and the insured in the proportion in which the loss or damage has been borne by them.
266(3)Where the interest of an insured in any recovery is limited to the amount provided under a clause in the contract to which section 253 applies, the insurer shall have control of the action.
266(4)Where the interest of an insured in any recovery exceeds that referred to in subsection (3) and the insured and the insurer cannot agree as to,
(a) the solicitors to be instructed to bring the action in the name of the insured,
(b) the conduct and carriage of the action or any matters pertaining thereto,
(c) any offer of settlement or the apportionment thereof, whether action has been commenced or not,
(d) the acceptance of any money paid into court or the apportionment thereof,
(e) the apportionment of costs, or
(f) the launching or prosecution of an appeal,
either party may apply to a judge of the court for the determination of the matters in question, and the judge of the court shall make such order as he considers reasonable having regard to the interests of the insured and the insurer in any recovery in the action or proposed action or in any offer of settlement.
266(5)On an application under subsection (4), the only parties entitled to notice and to be heard thereon are the insured and the insurer, and no material or evidence used or taken upon the application is admissible upon the trial of an action brought by or against the insured or the insurer.
266(6)A settlement or release given before or after an action is brought does not bar the right of the insured or the insurer, as the case may be, unless they have concurred therein.
1968, c.6, s.263; 1973, c.74, s.44; 1977, c.22, s.2; 1979, c.41, s.68; 2023, c.17, s.114
Subrogated to all rights of recovery
266(1)An insurer who makes any payment or assumes liability therefor under a contract is subrogated to all rights of recovery of the insured against any person and may bring action in the name of the insured to enforce those rights.
266(2)Where the net amount recovered whether by action or on settlement is, after deduction of the costs of the recovery, not sufficient to provide complete indemnity for the loss or damage suffered, the amount remaining shall be divided between the insurer and the insured in the proportion in which the loss or damage has been borne by them.
266(3)Where the interest of an insured in any recovery is limited to the amount provided under a clause in the contract to which section 253 applies, the insurer shall have control of the action.
266(4)Where the interest of an insured in any recovery exceeds that referred to in subsection (3) and the insured and the insurer cannot agree as to,
(a) the solicitors to be instructed to bring the action in the name of the insured,
(b) the conduct and carriage of the action or any matters pertaining thereto,
(c) any offer of settlement or the apportionment thereof, whether action has been commenced or not,
(d) the acceptance of any money paid into court or the apportionment thereof,
(e) the apportionment of costs, or
(f) the launching or prosecution of an appeal,
either party may apply to a judge of The Court of Queen’s Bench of New Brunswick for the determination of the matters in question, and the judge of the court shall make such order as he considers reasonable having regard to the interests of the insured and the insurer in any recovery in the action or proposed action or in any offer of settlement.
266(5)On an application under subsection (4), the only parties entitled to notice and to be heard thereon are the insured and the insurer, and no material or evidence used or taken upon the application is admissible upon the trial of an action brought by or against the insured or the insurer.
266(6)A settlement or release given before or after an action is brought does not bar the right of the insured or the insurer, as the case may be, unless they have concurred therein.
1968, c.6, s.263; 1973, c.74, s.44; 1977, c.22, s.2; 1979, c.41, s.68