What is an endorsement in the context of insurance?

An endorsement in the context of insurance refers to a policy amendment document. This means that it is an official modification or addition to an existing insurance policy that alters the terms or coverage. Endorsements can be used to add additional coverage, remove coverage, or clarify policy language, among other revisions. They are important because they allow policyholders to customize their insurance policies according to their specific needs without having to purchase a new policy entirely.

In contrast, a separate policy for additional coverage, while it may also provide more coverage, does not reflect the direct amendment nature of an endorsement. The agent's signature on the policy is not relevant to endorsement as it simply confirms that the agent has processed the policy, and a refund of the premium does not relate to modifications made to the coverage provided by a policy or its terms.