In insurance terminology, the addition to a policy that modifies provisions and coverage is called which term?

• A. Rider
• B. Endorsement
• C. Addendum
• D. Amendment

Answer: (A)

When you want to customize an insurance contract, you use a rider. A rider is a formal attachment to the policy that changes its provisions or adds new coverage, without rewriting the entire contract. In life and health policies, riders let you tailor benefits—for example, adding disability waivers, accelerated death benefits, or coverage for a dependent. The rider becomes part of the policy and alters what is covered or how benefits are paid.

Endorsements also modify a policy, but they’re the term more commonly used for changes in property and casualty policies. Addendum and amendment are less precise terms in this context and aren’t the standard language for modifying a life or health policy.