What aspect of an insurance policy must be documented in writing when changes are made?

When changes are made to an insurance policy, it is essential that these modifications be documented in writing through an endorsement. An endorsement is a formal amendment to the insurance contract, which specifies changes to the coverage, terms, or conditions of the policy. This ensures that both the insurer and insured have a clear and mutual understanding of any alterations that have been agreed upon.

Documenting changes through an endorsement is critical, as it provides legal evidence of the adjustments made to the policy. This includes not only new coverage but also adjustments to existing coverage, exclusions, or limitations. Without a written endorsement, changes could lead to misunderstandings or disputes regarding what is covered under the policy.

While aspects like the premium amount, claim procedures, and duration of coverage are important, these elements may not necessarily require a written amendment in the same way that an endorsement does. Premium amounts might adjust based on underwriting guidelines and can often be reflected in statements rather than formal endorsements, while claim procedures are generally a fixed part of the original policy. Similarly, the duration of the coverage may be defined in the policy and subject to renewal processes, rather than needing explicit written documentation following a change. Thus, the use of an endorsement is the correct mechanism for formally documenting changes to an insurance policy.