In an insurance policy, what does the term "conditions" refer to?

The term "conditions" in an insurance policy refers to the rules of conduct for both the insured and the insurer. These conditions outline the obligations and responsibilities that the parties must adhere to in order to maintain the validity of the policy and ensure that claims are processed correctly. For instance, the conditions may specify the necessary steps an insured must take after a loss occurs, such as notifying the insurance company in a timely manner and providing documentation for claims.

The inclusion of conditions helps to clarify the duties each party has, and failure to comply with these conditions could result in a denial of coverage or a claim. This framework establishes the basis under which the insurance policy operates, ensuring that both parties have a clear understanding of their roles in the relationship.