Subrogation is often explained as the carrier stepping into the shoes of the insured; the carrier has paid out for the loss, therefore the carrier is allowed to pursue the at-fault party for reimbursement for that payment. 

A few elements are critical. First, a third party must be responsible for the loss. Next, the insurer must have compensated the insured for damages that the third party is actually liable for, and the insurer must be obliged to make this payment to protect its own interest and not just pay it voluntarily.

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