DEFINITION of 'Endorsement'

1. A legal term that refers to the signing of a document which allows for the legal transfer of a negotiable from one party to another.

2. An attachment to a document that amends or adds to it. Typically, it is an added provision to an insurance policy. Also referred to as a "rider".


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BREAKING DOWN 'Endorsement'

1. When an employer signs a check, they are endorsing the transfer of money from the business accounts to the account of the employee.

2. If an insurance contract has a provision stating that in the event of the policy holder's death the family of the policy holder will continue to receive the policy holder's monthly income for a period of time, this is an example of an endorsement or a rider. Endorsements and riders cause the price of the premium to rise as they provide a positive benefit.

  1. Vandalism Endorsement

    An optional type of coverage that can be added to a basic hazard ...
  2. Pay To Order

    A check or draft that must be paid via endorsement and delivery. ...
  3. Blank Endorsement

    A signature by the creator of an instrument, such as a check, ...
  4. Rider

    A provision of an insurance policy that is purchased separately ...
  5. Insurance

    A contract (policy) in which an individual or entity receives ...
  6. Negotiable

    1. Describing the price of a good or security that is not firmly ...
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    According to Forbes, basketball player Derrick Rose holds the largest endorsement deal as of 2014; the deal is for more than ... Read Full Answer >>
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    The two related terms "peril" and "hazard" are often used in reference to the insurance industry. Essentially, a peril is ... Read Full Answer >>
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