What best defines the term "endorsement" in insurance?

In the context of insurance, the term "endorsement" refers specifically to an attachment or modification made to an insurance policy that changes its terms or benefits. This addition can clarify, expand, or limit coverage provided by the original policy. Endorsements are commonly used to tailor a policy to the specific needs of the insured, allowing for changes such as including or excluding certain coverages, or adjusting policy limits.

Understanding this, it's clear why this definition is significant. Policyholders might require specific coverage adjustments that are not addressed in the standard policy. For instance, if an individual purchases a homeowners insurance policy but later wants to include coverage for a newly acquired valuable item, they would receive an endorsement to ensure that the policy fully covers that item.

While the other options presented refer to various aspects of insurance, they do not encompass the definition of "endorsement" as effectively as the correct choice does. The other terms might relate to different processes or types of actions within insurance but do not refer to the modification of policy terms in the way "endorsement" does.