What happens to policy cover when an insured breaches a suspensive condition?

When an insured breaches a suspensive condition, the correct outcome is that the policy is invalid only while the condition is breached. Suspensive conditions are specific stipulations in an insurance contract that, if not met, can suspend the policy's effectiveness. This means that the coverage provided by the policy is contingent upon the compliance with the condition.

As long as the suspensive condition is breached, the policy does not provide any coverage. However, once the breach is remedied or the condition is fulfilled, the policy typically reinstates and coverage resumes. This approach reflects the principle that the insurer is taking a calculated risk by offering coverage, and they expect certain conditions to be met to mitigate that risk.

In contrast to the other options, the policy not being void for the entire year indicates that the contract remains in place and can become valid again once conditions are rectified. The intention behind this type of provision is to encourage the insured to comply with conditions rather than completely nullifying the contract.