In the context of insurance, what does the term "amendment" refer to?

In the context of insurance, the term "amendment" refers to a formal modification to existing coverage. This means that an amendment is a change made to an insurance policy after it has been issued, which can alter the terms of coverage. This can include expanding coverage to include additional risks, changing limits, or modifying other important policy details. Amendments are essential in adapting insurance policies to reflect new circumstances or the needs of the policyholder, ensuring the coverage remains relevant and adequate.

The other choices, while relevant to insurance concepts, do not accurately define "amendment." Financial rewards for claims relate to claims payments, restrictions applied to high-risk policies refer to underwriting practices, and statements of policy exclusions identify circumstances or conditions not covered by the policy. Each of these options addresses different aspects of insurance but does not capture the essence of what an "amendment" signifies in modifying existing coverage.