What is the purpose of a signed endorsement in an insurance policy?

A signed endorsement in an insurance policy serves the purpose of changing policy terms. Endorsements are modifications or additions to the original insurance contract, and they can alter specific aspects of coverage, such as the limits, exclusions, or even the types of risks covered. When an endorsement is signed, it indicates that both the insurer and the insured agree to the changes, thus officially amending the original terms of the policy.

While other choices may reflect common aspects of how endorsements are perceived, they do not capture the primary function of an endorsement itself. For instance, clarifying coverage conditions, reducing premiums, or adding additional coverage are possible outcomes of certain endorsements, but the hallmark of a signed endorsement is the formal alteration of the existing policy terms, which encompasses a range of modifications that the parties have agreed upon.