Which statement about riders is correct?

• A. Endorsement is a policy modification.
• B. A rider is a separate policy issued for additional coverage.
• C. Endorsements can add or modify coverage terms.
• D. A rider is a provision attached to add or modify coverage terms.

Answer: (D)

Riders are provisions attached to a policy that add or modify coverage terms. They are not standalone policies; they live with the original contract and change what the policy covers, often by adding new coverages or adjusting limits, deductibles, or conditions. That direct description fits what riders do, making it the best answer.

The other statements relate to endorsements or misconceptions about riders: endorsements are also changes to a policy, but they’re not what a rider is; saying a rider is a separate policy is incorrect because riders attach to the existing policy rather than stand alone; and while endorsements can add or modify terms, that describes endorsements—not riders.