An insured must comply with certain conditions of the policy for coverage to remain active. What are these called?

The correct answer is that the conditions of the policy that the insured must comply with to maintain coverage are referred to as warranties. Warranties are promises made by the insured regarding certain conditions or actions. If the insured fails to adhere to these specified warranties, the insurer may have grounds to deny a claim or cancel the policy, as these warranties are typically integral to the risk assessment process.

In insurance, warranties can include a range of stipulations, such as maintaining a certain level of security at a property or reporting losses in a specific timeframe. Their purpose is to ensure that the insurer's underwriting decisions remain valid throughout the policy term.

Understanding warranties is essential for both insured parties and adjusters, as their breach has significant implications for coverage. This underscores the importance of clear communication and understanding between the insurer and insured regarding the obligations at stake.