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Profits In Subrogation: An Insurer's Claim To Be More Than Indemnified, Jay S. Bybee

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“[I]f the assured is not entitled to retain an excess against the insurer, and the insurer … is not entitle to receive the excess from the assured, what happens to the excess?” This question, posed by Lord Justice Megaw in L. Lucas Ltd. v. Export Credits Guarantee Department, is bred by the juxtaposition of two subrogation rules. The right to subrogation, being in nature like restitution, entitles the holder of the right only to reimbursement and, under a contract of insurance, “the assured … shall be fully indemnified, but shall never be more than fully indemnified.” The confusion that distribution …