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 his personal 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, also known as a rider, is a written provision added to an insurance contract that modifies its terms or coverage. In this case, Mark's agent is suggesting adding an endorsement to change the basis of recovery from actual cash value to replacement cost.

Mark Reviewed His Homeowners Policy