The statute of limitations for subro claims is 2 years.

The statute of limitations for subro claims is 2 years.

• A. 1 year
• B. 2 years
• C. 3 years
• D. 4 years

Answer: (B)

Subrogation recoveries follow the same time limits as the underlying claim. When the insurer pays a claim due to a third party’s fault, the suit to recover those costs is treated like a negligent-tort action. In California, negligence-based personal injury claims have a two-year deadline, so most subrogation actions rooted in that kind of fault must be filed within two years of when the right to sue accrues (typically when payment is made or when the insured and facts identifying the at-fault party become known). If the loss is only property damage, the period is longer (three years). If the basis is a contract with the third party, the window is longer still (four years for a written contract, two years for an oral one). So for the common subrogation scenario, two years is the correct limit.

Subrogation recoveries follow the same time limits as the underlying claim. When the insurer pays a claim due to a third party’s fault, the suit to recover those costs is treated like a negligent-tort action. In California, negligence-based personal injury claims have a two-year deadline, so most subrogation actions rooted in that kind of fault must be filed within two years of when the right to sue accrues (typically when payment is made or when the insured and facts identifying the at-fault party become known). If the loss is only property damage, the period is longer (three years). If the basis is a contract with the third party, the window is longer still (four years for a written contract, two years for an oral one). So for the common subrogation scenario, two years is the correct limit.