Subrogation is an insurance provider's attempt to share financial responsibility with other providers. If your policy has a subrogation clause --- and most do --- this means your provider has the right to act in your interests to pursue financial remuneration after paying out your claim. If another party is at fault for your injuries or damages, the subrogation process allows your provider to seek out that party's insurer and obtain reimbursement.
A common subrogation process occurs when you're involved in an auto accident that's not your fault. Your insurance provider often will pay your financial claim for bodily and/or auto damage, then seek remuneration from the provider for the person who was determined to be at fault in the accident. Sometimes, this happens weeks after an accident occurs, especially if conflicting statements are made; in which case, an investigation or court case must run its course.
Each state has a Medicaid office which handles medical claims for thousands of citizens. The state insurance commissioner's office often pays medical claims after an accident, then enacts the subrogation process to recoup money from providers it believes should be responsible. This can happen when an injury occurs on the job, and the employer's provider is deemed to be the responsible party; it can also occur after a lawsuit for medical malpractice or product failure is filed.
Every insurance provider follows different procedures during the subrogation process, but the general framework is the same industry-wide. During the process, you will be contacted by a representative of your insurance provider and asked to provide details that can be used during its investigation. Standard requests involve police reports, medical records and the insurance information for the party or parties deemed responsible for paying all or a portion of the claim.
