Which statement about endorsements and riders is true?

• A. Endorsements apply to life and health policies; riders apply to property and casualty policies
• B. Endorsements apply to property or casualty policies; riders apply to life and health policies
• C. Riders apply to property or casualty policies
• D. Endorsements are not required to be written or attached

Answer: (B)

Endorsements are written amendments added to an existing policy to modify its terms, conditions, or coverage. They are commonly used on property and casualty policies to adjust what’s covered without issuing a new contract. Riders, by contrast, are add-ons that extend or enhance benefits within life or health policies, such as adding a particular benefit or option to the base policy. Because of this distinction, the true statement is that endorsements apply to property or casualty policies, while riders apply to life and health policies. Endorsements must be written and attached to the policy to take effect; they aren’t informal or verbally added changes.