Pearson VUE Life Insurance Practice Exam 2025 - Free Life Insurance Practice Questions and Answers.

An endorsement in insurance is a written amendment to an insurance policy that modifies its terms or coverage. This means that an endorsement can add, modify, or exclude certain provisions within the existing policy, allowing for greater flexibility and customization according to the insured's needs. Endorsements can address changes in risk, adjust coverage limits, or add new types of coverage that were not included in the original policy document.

In the context of insurance policies, endorsements are essential tools as they enable insurers and policyholders to tailor agreements to changing circumstances or additional requirements. For example, if a homeowner wants to add coverage for a newly acquired property feature, an endorsement would formalize this addition to the existing policy.

The other choices describe different aspects of insurance but do not align with the specific definition of endorsement. One references a specific type of life insurance for high-risk individuals, another addresses claims documentation, and the last relates to a policy covering additional costs incurred, none of which capture the essence of what an endorsement is in the insurance context.