What Is Waiver of Subrogation?
A contractual agreement where an insurer relinquishes its right to recover from third parties responsible for losses, often required in commercial arrangements. Personal lines candidates encounter this in endorsements and must understand when it eliminates the insurer's recovery rights.
Waiver of Subrogation across 2 exams
Waiver of Subrogation appears on the following exams. Each defines it in the context candidates are tested on:
- Personal Lines
- A contractual agreement where an insurer relinquishes its right to recover from third parties responsible for losses, often required in commercial arrangements. Personal lines candidates encounter this in endorsements and must understand when it eliminates the insurer's recovery rights.
- Surplus Lines
- A policy endorsement that prevents the insurer from pursuing recovery against third parties responsible for the loss. This is often requested by contractual partners and allows injured parties to maintain their own legal claims while being fully indemnified by insurance.