Other Than Life (OTL) Agent’s Exam A Practice

Endorsements are amendments attached to an insurance policy that change its coverage terms. They are used to modify or add coverage to the policy—such as expanding liability limits, adding coverage for a specific risk, or naming an additional insured. This allows tailoring the policy to evolving needs without issuing a brand-new policy.

They aren’t used to cancel the policy, nor to remove all liability coverage. While endorsements can affect premiums because the coverage is changing, the main purpose is adjusting what is covered, not increasing costs without justification.