What must an endorsement include to alter a policy effectively?

An effective endorsement in an insurance policy must clearly include words that explicitly state the changes being made. This is crucial because endorsements serve to modify or clarify the terms of an existing insurance policy. By clearly specifying the changes, it ensures that both the insurer and the insured understand how the policy has been altered.

For an endorsement to serve its purpose, it needs to detail the new provisions or modifications to avoid confusion about coverage, exclusions, or other important aspects of the policy. This clarity is essential for maintaining transparency and ensuring that all parties are aware of the adjustments being implemented, ultimately aiding in proper claims handling should a situation arise.

While the other options touch on important concepts in insurance, they are not strictly necessary for an endorsement to be effective. Written consent, while often required, does not need to be included in the endorsement itself as the endorsement is typically a unilateral modification made by the insurer. Similarly, details on premiums and a specific effective date can be relevant, but the essence of the endorsement lies in the explicit language that outlines the changes being made.