Policy conditions describe the rules for what, including duties after a loss and how claims are paid?

• A. The insured's and insurer's duties after a loss occur
• B. The list of covered perils
• C. The premium calculation
• D. The policy's endorsements

Answer: (A)

Policy conditions spell out the duties of both the insured and the insurer after a loss and explain how a claim is handled and paid. This includes the insured’s responsibilities—such as giving prompt notice of the loss, protecting the property from further damage, and cooperating with the insurer, as well as providing proof of loss within the required timeframe. It also covers the insurer’s responsibilities to investigate, adjust, and then pay or deny the claim according to the policy terms, along with any timelines, subrogation rights, and other administrative rules. The other options point to different parts of the policy: the list of covered perils is in the insuring agreement, premium calculation belongs to the rating section, and endorsements are policy modifications.