Which is an example of a condition in an insurance policy?

A use of the vehicle clause serves as a prime example of a condition in an insurance policy because it establishes specific stipulations regarding how the insured vehicle can be used. Conditions in an insurance contract are provisions that outline the obligations and limitations placed on both the insurer and the insured. The use of the vehicle clause specifies permissible uses of the vehicle—such as whether it can be used for personal use only or for commercial purposes—which the insured must adhere to in order for coverage to be valid.

In contrast, timelines for claim payments and the insurer's right to cancel the policy are relevant terms within the contract, but they do not delineate the specific conditions that must be met for the policy to remain in effect. Additionally, a condition for eligibility of damages also presents requirements but is less directly about the operational use of the vehicle, which is central to the definition of a condition in this context.