en⋅dorse⋅ment
[en-dawrs-muh
nt] 
| 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. |
Based on the Random House Dictionary, © Random House, Inc. 2009.
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| en·dorse·ment (ěn-dôrs'mənt) n.
|
Copyright © 2009 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Endorsement
En*dorse"ment\, n. [Cf. F. endossement.] Same as Indorsement.Cite This Source
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.
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See also: Instrument, Insurance, Negotiable, Rider, Voucher
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endorsement
- An owner's signature that serves to transfer the legal rights to a negotiable certificate to another party.
Copyright © 2003. Published by Houghton Mifflin.
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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
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
qualified endorsement
: an endorsement of a negotiable instrument with words (as “without recourse”) that limit or qualify the endorser's liability
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.
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>
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