What is indicated by the term "endorsement" in an insurance policy?

The term "endorsement" in an insurance policy refers to a written modification to the coverage or terms of the policy. Endorsements are used to add, remove, or change specific provisions within the insurance contract. For instance, they can enhance or limit coverage for specific situations, add additional insured parties, or modify conditions related to claims. This flexibility allows policyholders to tailor their insurance coverage to better meet their individual needs or circumstances.

In contrast, the other options do not accurately represent the meaning of an endorsement. A written promise to pay claims pertains to the insurer's obligation under the policy but does not capture the essence of what an endorsement entails. A summary of all policy benefits would typically be found in the policy declaration rather than as an endorsement. Lastly, a notification of policy cancellation refers to the termination of the insurance agreement and is separate from the adjustments that endorsements make to the existing policy terms. Thus, understanding endorsements as modifications to coverage is crucial for grasping how insurance policies can adapt to the insured's needs.