Condition

A section of an insurance policy which stipulates certain undertakings, usually by the insured, for the policy to respond properly. These are usually related to the manner in which the insured must conduct themselves, particularly regarding the notification and handling of claims. An insurer may be able to refuse indemnity under the policy if a condition has not been complied with – a condition precedent to liability. (In Australia this would be subject to the provisions of the Insurance Contracts Act.)