Which document outlines the specific terms and conditions of an insurance policy?

The correct answer is the insurance contract, as it is the formal agreement between the insurer and the insured that delineates all the terms and conditions governing the insurance coverage. This document is critical because it includes essential information such as the coverage limits, exclusions, rights, and obligations of both parties, as well as any endorsements or riders that may alter the basic policy terms.

While the policy declaration provides a summary of key details like the names of the parties involved, the type of coverage, and the coverage amounts, it doesn't encompass the entire scope of the terms. The premium schedule outlines the cost associated with the policy but does not include the conditions of coverage itself. Lastly, the application form is a document that collects information from the applicant in order to assess risk and determine insurability, but it does not serve as the binding contract where terms are clearly outlined. The insurance contract is thus the comprehensive document that legally binds both parties under defined terms and conditions.