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Bill

HD 513

An Act concerning equitable allocation of recovery proceeds for subrogation claims

194th Legislature (2025-2026) Introduced by Jeff Roy

Massachusetts bill requiring fair distribution of insurance subrogation recovery proceeds among multiple claimants instead of first-come-first-served allocation methods.

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Bill Summary · HD 513

Legislative bill overview

HD 513 addresses how proceeds from subrogation claims—legal recoveries made by insurance companies or other entities on behalf of injured parties—should be distributed fairly among all claimants. The bill establishes requirements for equitable allocation of these recovery proceeds rather than allowing first-in-time or arbitrary distribution methods. This applies to situations where multiple parties have claims against the same defendant or recovery source.

Why is this important

Subrogation recovery disputes currently create situations where some injured parties receive full compensation while others receive nothing, depending on procedural timing and claim management practices. This can leave some claimants inadequately compensated for legitimate injuries while others benefit disproportionately. Clear allocation rules provide predictability for insurers, attorneys, and injured parties in settlement negotiations.

Potential points of contention

  • Definition scope: Unclear whether "equitable allocation" means equal shares, proportional to damages, or some other formula—leaving implementation ambiguous
  • Insurance industry costs: Requiring fair distribution may increase settlement complexity and administrative costs, potentially raising insurance premiums
  • Timing and enforcement: No clear mechanism specified for determining when allocation requirements apply or how violations would be enforced against insurers or claim administrators

Compiled from official sources — confirm details with the bill’s official record.

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