How must policy changes be effected according to the rules?

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Prepare for the Florida Claims Adjuster (6-20) Test. Use flashcards and multiple choice questions, with hints and explanations for each question. Ace your exam!

Multiple Choice

How must policy changes be effected according to the rules?

Explanation:
Policy changes are alterations to the contract’s terms, so they must be made by the insurer in writing through an endorsement or rider. This creates a clear, enforceable record and prevents disputes over what is changed. The insured can request changes, but those changes only take effect when the insurer issues a written endorsement. Oral changes aren’t binding, and a third party can’t authorize or amend the policy. Therefore, the correct method is for the insurer to issue the written change.

Policy changes are alterations to the contract’s terms, so they must be made by the insurer in writing through an endorsement or rider. This creates a clear, enforceable record and prevents disputes over what is changed. The insured can request changes, but those changes only take effect when the insurer issues a written endorsement. Oral changes aren’t binding, and a third party can’t authorize or amend the policy. Therefore, the correct method is for the insurer to issue the written change.

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