Which of the following commercial property condition forms ensures that adjustments to coverages by an insurer must apply to all existing policies?

The selected answer is correct because the Liberalization clause in insurance contracts ensures that if the insurer introduces a broader coverage in the form of an endorsement or revision, this enhanced coverage automatically applies to all existing policies held by the insured, without any additional premium being charged. This provision is designed to guarantee that policyholders benefit from improvements in coverage that the insurer offers over time, ensuring that their policies remain competitive and comprehensive.

The other terms do not relate to the automatic adjustments of coverages in this way. The Other insurance clause deals with situations where multiple insurance policies cover the same risk, outlining how payouts will be coordinated. Subrogation involves the insurer's right to seek reimbursement from a third party after paying a claim, which is unrelated to policy coverage adjustments. Legal action against an insurer sets the rules regarding when and how a policyholder can bring a legal case against their insurance provider, without addressing changes in coverage terms. Therefore, the significance of the Liberalization clause is clear in its role of automatically adjusting coverage for existing policies in line with new enhancements offered by the insurer.