endorsement

en·dorse·ment   (ěn-dôrs'mənt)    n.   The act of endorsing: The athlete was highly paid to do endorsements of products. The signature on a check, contract, instrument, or other document endorsing it. Approbation; sanction; support: The candidates competed for the union's endorsement. An amendment or addition to an insurance policy, as to cover special circumstances.

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

An owner's signature that serves to transfer the legal rights to a negotiable certificate to another party.

Main Entry: en·dorse·ment
Variant: also in·dorse·ment
Function: noun
1 : the act or process of endorsing
2 : an inscription (as a signature or notation) on a document or instrument; especially : an inscription usually on the back of a negotiable instrument that transfers or guarantees the instrument

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blank endorsement
: an endorsement (as a signature) of a negotiable instrument that does not name a transferee and that makes the instrument payable to bearer called also endorsement in blank

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qualified endorsement
: an endorsement of a negotiable instrument with words (as “without recourse”) that limit or qualify the endorser's liability

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restrictive endorsement
: an endorsement of a negotiable instrument with words (as “for deposit only”) that limit the further negotiation of the instrument
NOTE: A restrictive endorsement does not prevent further negotiation of the instrument under the Uniform Commercial Code.

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spe·cial endorsement
: an endorsement of a negotiable instrument with words (as “Pay to Jane Doe”) that make the instrument payable to a specified person
3 : a provision added to an insurance policy that alters its coverage endorsement>