Which document specifies the terms of an insurance policy?

The insurance policy itself is the document that specifies the terms of an insurance policy. It outlines the coverage, exclusions, conditions, limits, and any endorsements that apply. This document serves as a contract between the insurer and the insured, detailing the rights and responsibilities of both parties.

Other documents like the renewal notice, premium payment receipt, and claims handbook serve different purposes. The renewal notice typically informs the insured that their policy is up for renewal, which may include changes in premium or terms but does not constitute the terms of the policy itself. The premium payment receipt confirms that a payment has been made but does not contain the specifics of what is covered. The claims handbook usually provides guidance on how to file a claim or the procedures involved, rather than defining the insurance contract's terms. Therefore, the correct choice is the insurance policy itself, as it is the sole document that comprehensively defines the agreement between the insurer and the insured.