It is the process that an auto insurance company uses to recover the money it paid for any claims where another party is responsible. As a specific example, an insurance company that did not actually pay out a claim to the policyholder has no grounds for a subrogation claim.You have no legal obligations to respond to a subrogation letter. You had a doctor's appointment, and your physician ordered a few tests. 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. A subrogated insurer may sue in the insurer's own name, or in the name of the insured for the use of the insurer. Here's an example of how auto subrogation works: You get rearended and the other driver is at fault. "Subrogation" refers to the act of one person or party standing in the place of another person or party.
