Conditions

The general terms or requirements upon which the insurance is based, the conditions will commonly include such matters as to the mutual understanding of the parties as to how the policy can be canceled or renewed, provisions with respect to change of the insured's interest, provisions as to what an insured should do in event of a loss, and conditions as to what he should do subsequent to a loss. A condition precedent is a condition that must be fulfilled prior to the general fact at stake. The insured for example is required to give notice of a claim and fulfill certain other obligations as a condition precedent to his receiving a settlement. Conditions subsequent are conditions which are applicable subsequent to the event, as for example, the insured is required to co-operate in the disposition of the claim and to co-operate other than in the monetary way, to assist to recover from anyone who is responsible for the loss.