Which part of the policy includes terms that outline the rights and obligations of the insured and insurer?

The part of the policy that includes terms outlining the rights and obligations of both the insured and the insurer is known as the Conditions section. This section is crucial because it specifies how both parties should act during the policy period, detailing what the insured must do in terms of notification of claims, cooperation with the insurer's investigations, and the insurer's responsibilities in terms of coverage.

Conditions can cover various scenarios, such as the process for filing a claim or the requirements for maintaining coverage. By clearly stating these terms, the Conditions section serves to mitigate misunderstandings and disputes, ensuring that both the insurer and the insured understand their responsibilities and rights within the contract.

The other sections of a policy serve different purposes, such as the Declarations section, which provides specific information about the policyholder and the property insured; the Insuring Agreement, which outlines the coverage provided; and the Definitions section, which clarifies the terms used throughout the policy. Each of these plays a role in the overall policy but does not encompass the rights and obligations in the way that the Conditions section does.