New Jersey Life Producer Practice Exam 2026 – Your Complete All-in-One Guide to Exam Success!

Question: 1 / 400

In insurance, what does the term "endorsement" refer to?

A written agreement that cancels a policy

A clause that modifies the terms of the original contract

The term "endorsement" in the context of insurance refers to a clause that modifies the terms of the original contract. It is commonly used to add, delete, or change coverage in an insurance policy. Endorsements allow insurers and policyholders to tailor a policy to meet specific needs or address particular risks that may not have been covered in the original policy.

For example, an endorsement might add coverage for specific items that were not initially included, or it could modify the terms regarding limits of liability or deductibles. This flexibility is essential in the insurance industry, as it allows policies to evolve and stay relevant to the insured's changing circumstances or requirements.

Understanding endorsements is crucial for both agents and policyholders, as they play a significant role in defining what is and isn't covered under an insurance policy.

Get further explanation with Examzify DeepDiveBeta

A type of fraud in insurance claims

A standard procedure in premium calculations

Next Question

Report this question

Download New Jersey Life Producer Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy