You have no legal obligations to respond to a subrogation letter. Like any legal document, the subrogation letter can be confusing if you aren't familiar with the term or the process.Click here to learn more about it! 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. It's the process where an insurance company steps into your shoes to recover funds from the party responsible for your injury. Subrogation is an arrangement between insurance companies to prevent insured parties from receiving double compensation. Thank you for using our online questionnaire. Subrogation is an insurer's right to recover payments made to you under your insurance policy from a third party who is at fault for the loss. When should my company send a Subrogation Letter? We're unable to pursue recovery from a third party until the claim investigation is complete, as we must prove that the recovery is owed.