At what stage can an insurer pursue subrogation rights from a responsible third party according to the subrogation condition in most policies?

The subrogation condition is a fundamental principle in insurance that allows an insurer to step into the shoes of its insured after settling a claim in order to pursue recovery from a responsible third party. The correct answer indicates that an insurer can take action to pursue subrogation as soon as the insured’s claim is notified.

This means that the insurer does not have to wait until the claim amount is agreed upon or until the claim itself is settled. The insurer's right to subrogation arises once it is aware of a loss that may involve a third party who is liable. This early initiation allows the insurer to investigate the circumstances surrounding the claim and to work on recovering costs from the responsible party. Notably, subrogation rights are integral to the insurance process as they help insurers mitigate their losses by recovering funds that are rightfully owed to them based on the liability of another party.

In contrast, the other options suggest timelines that require some form of acknowledgment or agreement regarding the claim amount or settlement already made. These do not reflect the immediacy allowed under the typical provisions of subrogation rights, thereby limiting the insurer's ability to effectively pursue other avenues for recovery.