How must policy changes be effected according to the rules?

How must policy changes be effected according to the rules?

• A. By the insured in writing
• B. By the insurer in writing
• C. By both parties orally
• D. By a third party

Answer: (B)

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.