Terms and Conditions
September 21, 2011
Policy terms and conditions are any provisions of the policy, including the application, that conditionally alter or qualify the scope of coverage. While the policy may promise to pay specific types of loss, it is generally conditioned on the insured's fulfilling certain duties. These obligations can include adhering to claim-reporting provisions and cooperation clauses, or conveying certain rights of recovery to the insurer under subrogation provisions. If the insured fails to meet the requirements of the conditions, the insurer may be relieved of its obligations to pay loss under the policy.
While important conditions generally are found under specific sections of the policy with headings such as Conditions, Terms & Conditions, General Conditions, etc., conditional language may be found in every part of the policy form, including the application. This section of FC&S D&O contains discussions of conditions found in the coverage application and most D&O policies under a specific heading.
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