What are the two typical forms of endorsements encountered in insurance policies?

The correct answer highlights the dual purpose of endorsements in insurance policies, which are key adjustments made to the original policy. Endorsements serve two primary functions: making changes to an existing policy and adding new coverage or provisions.

When clients seek modifications, such as updating coverage limits or altering the terms of the policy, these are reflected through endorsements. Additionally, if the insured requires new coverages that weren't included in the initial policy—like adding a new type of coverage or including an additional insured—an endorsement is used for that purpose as well.

This dual capability of endorsements allows for flexibility in insurance contracts, ensuring that policies remain relevant and tailored to the policyholder's current needs without requiring a completely new policy to be issued.