What term describes a policy revision that offers broader coverage without requiring additional premium?

The term that describes a policy revision providing broader coverage without necessitating an additional premium is known as liberalization. This concept is significant in insurance as it allows insurers to enhance the existing coverage terms in a policy, thereby offering clients improved benefits or protection without the financial burden of increased premiums.

Liberalization clauses are often included in insurance policies to ensure that policyholders automatically benefit from these enhancements when new or improved coverage options are introduced. This practice fosters goodwill among clients, as they do not have to take any action or incur any costs to gain enhanced coverage.

Understanding liberalization is crucial for brokers and agents as it centers on how policies adapt to change and benefit clients. In contrast, the other terms refer to specific adjustments or additions to a policy but do not inherently imply broader coverage without a cost. For instance, endorsements typically involve adding coverage for specific perils or risks, amendments alter existing terms, and extensions expand coverage but might still involve additional costs.