Glossary
Endorsement
A document that amends an in-force policy — changing coverage, limits, insured property, or named parties — usually with a corresponding premium adjustment.
Endorsements are how a policy changes without being rewritten: adding a vehicle, raising a limit, changing a loss payee. Most carry a premium adjustment, positive or negative, prorated over the remaining term.
Because endorsements generate off-cycle premium and commission, they are a frequent reconciliation headache. A single policy may appear on a statement several times in a year — once for the original premium and once for each endorsement — and each line has to be matched back to the same policy record without double-counting.
See also
- Audit Premium — An adjustment to premium determined after the policy period, once the insurer measures the insured's actual exposure aga…
- Return Premium — Premium refunded to an insured when a policy is cancelled mid-term or an endorsement reduces the exposure.
- Policy Term — The period during which a policy provides coverage, running from its effective date to its expiration date.