Which of the following best describes "endorsements" in an insurance policy?

Endorsements in an insurance policy refer to modifications that change, add, or restrict coverage. This means that when an endorsement is applied to a policy, it can enhance the existing coverage by adding new protections, remove certain coverages, or modify the terms of the policy to better fit the policyholder’s needs.

For example, if a policyholder wants to add coverage for a specific item that is not typically included in their automobile insurance, they can request an endorsement to include that item under their current policy. Alternatively, if a policyholder decides to limit coverage in certain scenarios—perhaps to adjust their premium or change their risk profile—an endorsement can be used to specify these limitations.

Understanding endorsements is crucial as they directly impact the coverage and protection provided by an insurance policy, allowing for greater flexibility and customization based on the individual needs and circumstances of the policyholder.