Which document outlines the terms, conditions, and limits of an insurance policy?

The policy contract is the foundational document that outlines the terms, conditions, and limits of an insurance policy. This contract serves as a legal agreement between the insurer and the insured, specifying various details such as the coverage provided, exclusions, conditions for claims, and the obligations of both parties. It defines what is covered and what is not, enabling policyholders to understand their rights and responsibilities in relation to their insurance.

In contrast, an insurance binder is a temporary document that provides proof of insurance coverage until the formal policy contract is issued. While it serves to confirm that coverage is in place, it does not provide the comprehensive terms and conditions that the policy contract does. A claim form is a document completed by the insured to report a loss and initiate the claims process, but it also does not contain the policy’s terms. The policy declaration provides a summary of the policy details, such as the insured's name, coverage amounts, and premiums, but it does not include the full terms and conditions found in the policy contract. Thus, the policy contract is essential for a complete understanding of the insurance agreement.