What must occur for an insurer to fulfill their obligation under a conditional contract?

For an insurer to fulfill their obligation under a conditional contract, such as a title insurance policy, it is essential that a claim be filed. This is because conditional contracts, by their nature, provide coverage in specific circumstances that trigger the insurer's obligation to pay or take other actions. In the context of title insurance, the insurer's commitment to cover losses arising from title defects or disputes begins once a valid claim is submitted by the policyholder.

Filing a claim initiates the process through which the insurer can assess the validity of the claim and determine its obligations under the policy. This mechanism is critical to ensure that the insurer responds appropriately based on the actual circumstances presented in the claim.

Other factors, such as premium payments or negotiations between the parties, may be relevant to the establishment or maintenance of the insurance policy but do not alone activate the insurer's obligations under a conditional contract. Similarly, the occurrence of certain events is natural to the execution of insurance contracts, but they do not preclude the necessary filing of a claim for coverage to be valid.