What does Conventional Subrogation mean? Read on to discover the definition & meaning of the term Conventional Subrogation - to help you better understand the language used in insurance policies.
Subrogation rights that have been modified between two parties by the terms of a contract entered into by them. Conventional subrogation is necessarily narrower in scope than subrogation under common law (or equitable subrogation) because a contract cannot expand subrogation rights, only restrict them. An example of conventional subrogation is the agreement of contracting parties to waive their rights of recovery against each other to the extent to which insurance is being maintained on the exposures for which the parties might otherwise incur liability.
We hope the you have a better understanding of the meaning of Conventional Subrogation.