The statute of limitations for a subrogation claim is?

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

Answer: (B)

Subrogation lets the insurer step into the insured’s shoes and sue the liable third party to recover amounts the insurer paid. In California, the time limit to bring that subrogation claim generally follows the period for the underlying cause of action against the third party, which for typical subrogation arising from negligence is two years. The accrual usually occurs when the insurer pays the claim (or when the insurer’s right to sue becomes clear), with possible tolling in certain situations. Longer or shorter limits apply to other kinds of actions (like certain contracts or specific claims), but for a standard subrogation action the two-year limit is the applicable period.