"Policy terms" refer to the specific conditions and rules outlined in a legal document, such as an insurance policy or a contract. These terms define the rights and responsibilities of all parties involved, detailing what is covered, any exclusions, and the duration of the agreement. Understanding these terms is crucial for ensuring compliance and knowing what to expect. In the context of insurance, policy terms can include aspects like premium payments, deductibles, and coverage limits. They help clarify how claims are processed and what circumstances might lead to a denial. Familiarity with these terms can aid individuals in making informed decisions.