What is an insurance "policy endorsement"?

A policy endorsement is indeed a written modification to the terms of an insurance policy. Endorsements can alter, add, or restrict coverage and are used to clarify or adjust the original terms agreed upon in the policy. This means that when changes need to be made, such as adding a new coverage area or modifying an existing one, these adjustments are formalized through endorsements. They serve as an official part of the insurance contract, ensuring that both the insurer and the insured are clear on the specific modifications made.

Understanding endorsements is crucial for policyholders because they directly impact coverage and can affect claims and overall insurance protection. This makes them significantly important in the administration of insurance policies. The other options do not accurately define an endorsement; while a clause that voids a policy, a requirement for policy renewal, or a summary of the policyholder's rights may relate to insurance policies, they do not encapsulate the concept of an endorsement.