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.