Final answer:
Riders and endorsements in insurance policies are designed to adjust coverage or modify policy terms, not to cancel the policy itself.
Step-by-step explanation:
Riders and endorsements are additions to an insurance policy that are used to modify the terms and conditions of the policy. They can be added for various purposes, such as to increase coverage, modify policy terms, or to reduce premium payments. However, they are not specifically designed to cancel the policy. Instead, cancellation is a separate action that a policyholder or insurance company can take in accordance with the terms of the policy itself.
Riders and endorsements provide flexibility for both the insurer and the insured by tailoring an insurance policy to better fit the individual's needs or changing circumstances. They may increase the cost of the policy or decrease it, depending on the nature of the rider or endorsement. However, their primary function is not to terminate the insurance contract but to adjust coverage specifics.