What is an example of a "rider" in an insurance policy?

• A. A type of insurance fraud
• B. An endorsement for added coverage
• C. A clause that limits coverage
• D. A written complaint

Answer: (B)

In the context of insurance policies, a "rider" refers to an endorsement that provides additional coverage or modifies the existing terms of the policy. This allows policyholders to customize their insurance plan according to their specific needs. For example, a rider might be added to a life insurance policy to include accidental death benefits, which would pay an additional sum if the policyholder dies in an accident.

This enhancement reflects the flexibility and personalization of insurance products, enabling individuals to protect themselves against particular risks that may not be covered under a standard policy. In contrast, options such as insurance fraud, clauses that limit coverage, or written complaints do not serve the function of enhancing or specifying coverage terms in a typical insurance policy.