Which situation does NOT constitute a breach of the insurance policy's terms?

Continuing to pay premiums on time is a key element in maintaining an insurance policy. When the insured makes timely premium payments, they are honoring their contractual obligation, which is essential for keeping the policy active and in good standing. This action does not violate any terms of the insurance policy; instead, it reflects compliance with the agreed-upon terms between the insured and the insurer.

In contrast, the other scenarios represent potential breaches of policy terms. Failing to disclose prior health conditions may lead to issues regarding the validity of the policy if those conditions affect risk assessment. If the insurer does not pay out claims upon policy maturity, this could indicate a violation of the contractual obligations outlined in the policy. Additionally, if an insurance application is not included in the policy documentation, it can raise questions about the validity and enforceability of the policy itself. Therefore, making timely premium payments is the only situation that clearly does not constitute a breach of the insurance policy's terms.