In terms of insurance policy structure, what do conditions specify?

Conditions in an insurance policy outline the legal obligations of both the insured and the insurer. These stipulations detail what actions must be taken and what responsibilities must be met for the policy to remain in effect. For instance, conditions may specify the requirement for the policyholder to report claims in a timely manner or to cooperate with the insurer’s investigation of a claim. They also govern the insurer’s responsibilities in terms of claims handling and payment.

This structure is crucial because it sets the framework for how the insurance contract will function throughout the duration of the policy, ensuring that both parties understand their roles and duties. By clearly defining these obligations, conditions help prevent misunderstandings that could arise during claims processing or in situations of policy enforcement.