Mark reviewed his homeowners policy.He learned that his personal property was insured on an actual cash value basis.He would like replacement cost coverage on the property.He contacted his agent who said,"I'll simply add an amendment to your contract that changes the basis of recovery to replacement cost." The written provision the agent was referring to is called a(n)
A)endorsement.
B)coinsurance clause.
C)binder.
D)deductible.

Question

Quizplus · Accepted Answer

An endorsement is a written provision added to an insurance contract that modifies or changes the terms of the policy. In this case, the endorsement would change the basis of recovery from actual cash value to replacement cost coverage.

Mark Reviewed His Homeowners Policy