A personal accident insurance policy that compensates for actual, proved financial loss (such as medical expenses necessarily incurred, rehabilitation expenses, travel expenses, and loss of income capped at pre-accident earnings) is an indemnity policy to which the equitable doctrine of subrogation applies, regardless of the generic classification of the policy as a 'personal accident' policy. An insured (including a third-party beneficiary) who settles with a tortfeasor without bona fide consideration of the insurer's subrogation interests breaches an equitable duty to the insurer and may be liable for equitable compensation.
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