Final answer:
The Lay-up endorsement is used to suspend or reduce coverage for a vehicle during periods of inactivity, such as the winter months for a boat. This helps to lower insurance premiums while still providing coverage during the active season.
Step-by-step explanation:
The purpose of the Lay-up endorsement is to suspend or reduce coverage for a vehicle during periods when it is not in use. This endorsement is commonly used for seasonal vehicles, such as boats or motorcycles, which may only be driven during certain times of the year.
For example, if a boat is only operated from April to October, the Lay-up endorsement can be added to the insurance policy to temporarily suspend coverage during the winter months when the boat is not in use. This helps to lower insurance premiums while still providing coverage during the active season.
By reducing or suspending coverage during periods of inactivity, the Lay-up endorsement allows policyholders to save money on insurance premiums while still maintaining coverage during the times when they need it most.