Which situation would indicate use of an amendment?

• A. Waive a contract provision
• B. Change the insured's name unilaterally
• C. Add a completely new clause
• D. Extend the policy term without consent

Answer: (A)

An amendment is a formal change to an existing contract that alters its terms, rights, or obligations. Waiving a contract provision fits this idea because it removes or suspends a specific contractual requirement, effectively changing how the policy operates for both parties. It’s a modification of the agreement’s terms rather than a new agreement on top of it.

The other situations don’t describe a term modification in the same way. Changing the insured’s name, especially without consent, is typically handled through an endorsement or administrative update rather than an amendment to the contract’s terms. Adding a completely new clause introduces a new obligation or coverage element and usually requires a broader revision or a new policy, not a simple amendment. Extending the policy term without consent would violate the contract and isn’t a legitimate amendment.