Which term is used for provisions that outline the responsibilities of both parties in an insurance contract?

The correct term for provisions that outline the responsibilities of both parties in an insurance contract is 'Conditions.' Conditions are essential elements of an insurance policy that specify the obligations that the insurer and the insured must fulfill. This can include actions the policyholder must take to keep the coverage in force, such as notifying the insurer of claims or changes in risk, as well as what the insurer must do when a claim is made, such as providing coverage as stipulated in the policy.

Understanding conditions is vital because they help to clarify the expectations from both sides, ensuring that the parties understand their roles in the agreement. This clarity helps prevent misunderstandings or disputes at the time of a claim and establishes a framework for how the contract will be upheld and enforced.