Arkansas Insurance Adjuster Practice Exam

Which of the following statements is NOT true of endorsements?

1. Endorsements may be added to a policy at the time of purchase and at renewal

2. An endorsed policy will always provide more coverage than an unendorsed policy

3. Endorsements may be added to a policy at any time during the policy period

4. An endorsed policy has been changed from the original version

The correct answer is: An endorsed policy will always provide more coverage than an unendorsed policy

Endorsements are additional provisions or changes that can be added to an insurance policy. While endorsements can often increase coverage, they may also reduce or limit coverage in certain situations. This means that not all endorsements will provide more coverage than an unendorsed policy. Therefore, statement B is not always true. Option A is true because endorsements can be added to a policy both at the time of purchase and at renewal. Option C is also true because endorsements can be added to a policy at any point during the policy period, not just at the time of purchase or renewal. Option D is also correct as an endorsed policy has been modified or changed from the original version of the policy. It is important to carefully review the details of any endorsements added to a policy to fully understand how they affect your coverage.