• Example: 2004 Ford F150 starts on fire and burns up in driveway. Faulty alternator is cause (product liability)."Subrogation" means to substitute one party for another in respect to an insurance claim or debt. For example, if the policy's subrogation clause calls for an assignment, the insurer must procure the assignment from the insured to proceed. Example of Subrogation. Adam and Rachel collided in a car accident. Subrogation is a legal action that an insurance company (the insurance carrier) takes to recoup the funds paid out in a claim from the atfault party. The Arizona Court of Appeals recently issued a memorandum that provided a great refresher of the doctrine of equitable subrogation in Arizona. What is subrogation? At the minimum, your subrogation file should contain all elements corresponding to liability determination and proof of damages.