What is an endorsement and how does it differ from a rider?

• A. Endorsement is a policy modification; rider is a provision attached to add or modify coverage terms.
• B. Endorsement is a separate policy issued for additional coverage; rider is a discount.
• C. Endorsement is used only in auto policies; rider is not allowed.
• D. Riders are used to cancel coverage.

Answer: (A)

An endorsement is a change to the terms of the existing policy. It directly modifies the policy itself—altering coverage, limits, deductibles, or conditions within the current contract. A rider, by contrast, is an add-on provision attached to the policy to provide extra coverage or extend terms beyond what the base policy offers. It sits with the policy as an additional feature or option, often at an extra cost. So, endorsement = policy modification to the existing contract; rider = attached provision that adds or expands coverage terms. This distinction is why the described option is correct.