Minnesota Real Estate Exam Practice Question
What is added to a policy to modify or change the original policy?
Correct Answer: C
Rationale: An endorsement is a formal addition to an insurance policy that modifies its terms or coverage. It can expand, restrict, or clarify the policy, ensuring that specific needs are met.
Option A, insuring agreement, outlines the basic coverage provided but does not modify the policy itself. Option B, conditions, specifies the rules and obligations of both the insurer and insured but does not alter the policy’s core provisions. Option D, enhancement, is not a standard term in insurance terminology and does not specifically refer to a modification of the original policy. Thus, endorsement is the only option that directly addresses changes to policy terms.
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