Life & Health Insurance Practice Exam 2025 – Your All-in-One Guide to Exam Success!

The attached agreement that alters the terms of an insurance policy is referred to as an endorsement. An endorsement modifies the policy by adding provisions, changing existing terms, or clarifying coverage specifics. This is important for policyholders because endorsements can enhance the coverage or adapt it to better meet their needs, reflecting changes in circumstances or requirements.

For instance, if a policyholder wants to include additional coverage for specific assets or events that are not included in the original policy, an endorsement would facilitate that change. Endorsements typically become a part of the policy document and carry weight in the same manner as the policy's original terms.

While addendums, riders, and amendments may refer to similar concepts in other contexts or types of agreements, in the insurance field, the term "endorsement" is the standard terminology used for these modifications. A rider, for example, usually refers to specific additional benefits or coverages added to a policy, while an addendum is more general and not commonly used in insurance. An amendment indicates a change but may not specifically reference an attached document like an endorsement does.