These subrogation letters state you must repay your insurance when you receive a settlement from the negligent driver. And threaten action if you do not.Learn what Subrogation Clauses are with examples and samples. We've created a guide to the most common clauses found in contracts to explore in 2022. Virginia law does not permit state regulated health plans to seek reimbursement, but several federal statutes do. This is an example of how subrogation works: EXAMPLE: John has car insurance with State Farm. Bob rear ends John on the road causing damage to John's car. Guarantor shall be subrogated to the rights of Buyer against Seller and Parent and in any collateral for any Obligations with respect to such payment. Unlike other states, Virginia has laws that prohibit health insurance contracts issued in our commonwealth from having a subrogation clause in their contract. Equitable Subrogation in Virginia.