Which act outlines the basic provisions and conditions applicable to insurance policies?

The correct choice is the Insurance Act, as it serves as the foundational legal framework governing insurance policies in Ontario. This act sets out the essential provisions, conditions, and requirements that insurance policies must adhere to, ensuring uniformity and fairness in the insurance market. It defines the rights and obligations of both insurers and insured, regulates the conduct of insurance companies, and establishes the guidelines for how insurance contracts are to be formed and executed.

This legislation is crucial for protecting consumers by providing clear guidelines on what to expect from insurance policies and what obligations insurers have towards policyholders. It covers various aspects, including disclosures, claims processing, and the cancellation of policies.

In contrast, other options relate to broader or more specific areas of regulation. The Highway Traffic Act focuses on road safety and regulations for road users, the Insurance Companies Act primarily deals with the incorporation and operation of insurance companies rather than the specific terms of insurance policies, and the Compulsory Automobile Insurance Act mandates certain types of insurance for vehicle owners but does not encompass the comprehensive conditions of all insurance policies. Therefore, the Insurance Act is the best answer as it encapsulates the fundamental provisions applicable to insurance policies themselves.