What method is used to add PIP coverage to a monoline commercial auto policy?

What method is used to add PIP coverage to a monoline commercial auto policy?

• A. Riders
• B. Endorsements
• C. Declarations
• D. Addendums

Answer: (B)

Endorsements are the standard way to modify a policy by adding coverage, such as PIP, to a monoline commercial auto policy. An endorsement is a written amendment attached to the policy that expands or changes terms and becomes part of the contract. Since PIP isn’t automatically included, the insurer issues an endorsement that adds PIP with the chosen limits and conditions. Declarations simply summarize the policy’s basics and aren’t used to add coverages after issuance. Addendums isn’t the conventional term used in property/casualty for this purpose, and riders are not the typical mechanism in this auto context.

Endorsements are the standard way to modify a policy by adding coverage, such as PIP, to a monoline commercial auto policy. An endorsement is a written amendment attached to the policy that expands or changes terms and becomes part of the contract. Since PIP isn’t automatically included, the insurer issues an endorsement that adds PIP with the chosen limits and conditions. Declarations simply summarize the policy’s basics and aren’t used to add coverages after issuance. Addendums isn’t the conventional term used in property/casualty for this purpose, and riders are not the typical mechanism in this auto context.