What are conditions that are covered by common law and do NOT need to appear in an insurance policy called?

The correct answer is implied conditions. In the context of insurance, implied conditions refer to the terms and conditions that are understood to be part of the contract based on common law principles, even if they are not explicitly stated in the insurance policy itself. These conditions arise because of the nature of the contract and the relationship between the parties involved.

For instance, there are certain expectations that both the insurer and insured have, such as the duty of the insured to disclose material facts and the insurer's obligation to settle valid claims. These obligations are typically inferred from the legal framework governing contracts and do not need to be explicitly spelled out in the policy document.

In contrast, express conditions are those that are specifically detailed in the insurance contract, meaning that both parties are clearly aware of their rights and obligations. General conditions might typically refer to broad statements applicable to various contracts that establish standard practices, whereas legal conditions could refer more broadly to any conditions that arise under legal statutes or regulation.

The concept of implied conditions underscores the importance of understanding the underlying legal principles that govern contracts, which can impact claims and coverage even when not explicitly mentioned in the policy language.