Personal Lines Insurance Practice Exam

Changes to a property insurance policy generally require a written endorsement. An endorsement is a formal document that modifies the original insurance policy. This can include alterations such as adding or removing coverage, changing the limits of coverage, or updating named insureds on the policy.

Using a written endorsement ensures that all changes are documented properly and that both the insurer and the insured have a clear understanding of the updated terms and conditions. This is critical not only for legal purposes but also for maintaining accurate records of the insurance coverage.

While it may be important for all named insureds to agree on certain changes or for insurers to have some level of notification (in relation to claims or otherwise), the formal process of amending a policy directly relies on the use of an endorsement rather than just agreements or notifications. Therefore, the endorsement acts as an essential tool for making lawful adjustments to the policy, providing both clarity and protection to all parties involved.