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Anarel [89]
3 years ago
13

Maggie purchased a life insurance policy. She was concerned that if she became disabled, she would no longer be able to pay the

premiums. Her agent added an amendment of the policy stating that if she became disabled, future premium payments would be waived. Such an amendment to a life insurance policy is called a(n)
A) binder.

B) rider.

C) warranty.

D) schedule.
Business
1 answer:
ehidna [41]3 years ago
3 0

Answer:

The correct answer is letter "B": rider.

Explanation:

While talking about insurance, riders are provisions added to the regular coverage for life, home, or auto policies. The insured can request adding the rider under a determined fee which is usually low because there is little underwriting involved. Riders are customizable amendments that fulfill very specific needs of the policyholders.

<em>In Maggie's case, a rider was added to protect her in the case she becomes disabled because she is concerned that event can happen.</em>

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