Subrogation is when your insurance company seeks reimbursement from your settlement. Cozen O'Connor is the world's leading subrogation and recovery law firm.We founded our subrogation and recovery practice in 1970. It is only when the plaintiff's recovery exceeds the sum total of the plaintiff's damages that the right of subrogation arises. The subrogation process is the right of an insurance company to recover the amount it has paid on a claim from the at-fault party. Subrogation is a legal process that allows an insurance company to step into the shoes of an insured person and recover money paid out on a claim. 100 - Subrogation: Right to recover from third party; lien against recovery; subrogation not basis for denial of payment of benefits 1. Medicaid Estate Recovery (MER) and. In the past, the issue has turned on the question of damages. This action allows them to recover expenses paid out to you previously, straight out of your settlement value.