The correct answer is: B. Changes in the terms of the policy are made through endorsements.
A schedule is a document that lists the specific details of a policy, such as the insured’s name, the amount of coverage, and the deductible. Once a policy is issued, the schedule cannot be altered. However, changes to the terms of the policy can be made through endorsements. An endorsement is a document that modifies the terms of an existing policy. It is signed by both the insured and the insurer and becomes part of the policy.
Here are some examples of changes that can be made through endorsements:
- Increasing or decreasing the amount of coverage
- Changing the deductible
- Adding or removing coverage
- Changing the insured’s name or address
- Changing the beneficiary
It is important to note that not all changes can be made through endorsements. Some changes, such as changing the type of policy, require the issuance of a new policy.