Final answer:
An endorsement to a policy can modify, exclude, or add to the coverage but doesn't typically delete coverage. It is meant to customize the policy, affecting the coverage in various ways including increasing, having no effect, or decreasing it. The correct option is b. excludes.
Step-by-step explanation:
An endorsement to a policy can modify, exclude, add to, but does not typically delete coverage from the policy. These changes are used to customize an insurance policy to suit the specific needs of the policyholder. Here are the impacts:
a. Modifies coverage - This can increase, decrease, or have no effect on the terms, depending on the endorsement. Examples include adding or modifying limits or deductibles.
b. Excludes coverage - Generally, this will decrease the scope of coverage by removing a certain risk or item from the policy.
c. Deletes coverage - Though an endorsement can sometimes eliminate coverages, this is a misnomer as 'delete' implies a permanent removal, which is not the primary function of endorsements. Instead, endorsements adjust coverage.
d. Adds to coverage - This will increase the scope of coverage by including additional risks or items.
According to the reference information given, the correct sequence terms related to the impact of endorsements on policy coverage would likely be c. increases, has no effect on, decreases. However, this may vary depending on the specific circumstances of each individual endorsement.