Policy Changes Impacting Premiums and Coverage Limits

A

The answer to the question is A. Endorsement.

An endorsement is a written document that modifies an existing insurance policy. It is also known as a rider or an amendment. Endorsements can add, remove, or change coverage, terms, or conditions of a policy.

Changes in existing policies that may result in additional premiums or return premiums, such as increases or decreases in coverage limits, can be made through an endorsement. Endorsements can increase the premium if they increase the amount of coverage provided by the policy. Conversely, they can result in a return premium if they reduce the amount of coverage provided.

An endorsement can be requested by the policyholder, the insurance company, or both. The policyholder may request an endorsement to add additional coverage, such as a higher limit or a new type of coverage. The insurance company may request an endorsement to modify the policy's terms and conditions, such as adding a deductible or excluding a certain type of risk.

In summary, an endorsement is a written document that modifies an existing insurance policy. It can result in additional premiums or return premiums, depending on the changes made to the policy.