Loyal subject, for example, in fiction (5)
I believe the answer is:
liege
'loyal subject' is the definition.
(I've seen this in another clue)
'example in fiction' is the wordplay.
'example' becomes 'eg' (short for 'exempli gratia', 'for example' in Latin).
'in' means one lot of letters goes inside another.
'fiction' becomes 'lie' (I've seen this in other clues).
'eg' going inside 'lie' is 'LIEGE'.
'for' acts as a link.
(Other definitions for liege that I've seen before include "Belgian city or ancient lord" , "European city" , "Loyal subject" , "Vassal; city in Belgium" , "Belgian city on Meuse" .)