Which is an appropriate use of an amendment?

• A. Waive a contract provision
• B. Alter the policy's terms without consent
• C. Issue a new policy without application
• D. Cancel the policy

Answer: (A)

Amendments are changes to an existing contract that both parties must agree to. Waiving a contract provision fits this idea because it is a deliberate alteration of how a term is applied under the policy, typically documented as an endorsement or rider and attached to the existing contract. It keeps the rest of the policy in place while changing the effect of a specific provision.

Altering terms without consent would be a unilateral change and isn’t allowed because it alters the contract without both sides agreeing. Issuing a new policy without an application bypasses the standard underwriting and formation process. Canceling the policy ends the contract rather than modifying it.