Conditions impose obligations on the insured as a prerequisite to coverage. Common conditions include prompt notice of an occurrence or claim, cooperation in the defense, submission to examination under oath, and refraining from voluntary payments or admissions.
Breach of a condition may forfeit coverage, though most states require the insurer to show prejudice.
Alternative Names:
Condition, Policy Conditions
Why it Matters?
Conditions supply coverage defenses that operate independently of the merits, which makes them worth analyzing at the outset of every claim. The two that most often produce disputes are notice and cooperation, and both require documenting what the insured was asked to do and what they did. A denial based on breach of condition without demonstrable prejudice invites bad faith exposure in most jurisdictions.
Frequently Confused with
Related terms
Frequently asked questions
What happens if the insured breaches a condition?
Which conditions cause the most disputes?
