What section of an insurance policy limits the insurer's obligations?

• A. Exclusions
• B. Coverage
• C. Conditions
• D. Endorsements

Answer: (C)

The section of an insurance policy that limits the insurer's obligations is the Conditions section. This part of the policy outlines specific responsibilities and requirements that both the insurer and the insured must fulfill for coverage to be valid. Conditions can include stipulations about how claims should be reported, the cooperation required from the insured during the investigation of a claim, and other procedural aspects.

While the Exclusions section specifies what is not covered by the policy, Conditions focus on the operational framework under which the policy functions. This means that if these conditions are not met, the insurer may not be obligated to pay claims. Therefore, understanding the Conditions section is vital for both policyholders and insurers, as it delineates the boundaries of the coverage and plays a key role in enforcing the terms of the insurance contract.