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| 1. | approval or sanction: The program for supporting the arts won the government's endorsement. |
| 2. | the placing of one's signature, instructions, etc., on a document. |
| 3. | the signature, instructions, etc., placed on the reverse of a commercial document, for the purpose of assigning the interest therein to another. |
| 4. | a clause under which the stated coverage of an insurance policy may be altered. |
Endorsement
1. A legal term that refers to the signing of a document which allows for the legal transfer of a negotiable from one party to another.
2. An attachment to a document that amends or adds to it. Typically, it is an added provision to an insurance policy. Also referred to as a "rider".
Investopedia Commentary
1. When an employer signs a check, they are endorsing the transfer of money from the business accounts to the account of the employee.
2. If an insurance contract has a provision stating that in the event of the policy holder's death the family of the policy holder will continue to receive the policy holder's monthly income for a period of time, this is an example of an endorsement or a rider. Endorsements and riders cause the price of the premium to rise as they provide a positive benefit.
Related Links
Buying Life Insurance: Term Versus Permanent
Medicaid Versus LTC Insurance
The Evolution of LTC-Insurance Plans
See also: Instrument, Insurance, Negotiable, Rider, Voucher
endorsement