Q. (cont.) For example, if my insurance company pays another insurance company to reimburse them for a claim made by their insured, do I need to issue a 1099 to the other insurance company?
A. We spoke with IRS Information Specialist Mrs. Lamb (#1001306657), who said yes, this subrogation payment would be reportable to the other insurance company in box 3 of the 1099 form, provided the other company is not a corporation. She noted, however, that most insurance companies are required to be incorporated, and if that is the case here, then no 1099 is needed.