New York Insurance Exam Practice Question
What is a rider in an insurance policy?
Correct Answer: B
Rationale: A rider in an insurance policy is an amendment that modifies coverage, allowing policyholders to tailor their insurance to better meet specific needs. This customization can include adding or excluding certain protections.
Option A, a document that cancels the policy, misrepresents a rider’s purpose, which is to enhance rather than terminate coverage. Option C, a premium payment schedule, refers to the timing and amount of payments, not modifications to the policy itself. Option D, a claim denial form, is unrelated to policy amendments and pertains to the claims process rather than coverage adjustments.
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