Endorsements may be used to exclude coverage for all-terrain vehicles used in water.

• A. True
• B. False
• C. Not applicable
• D. Endorsements are never used

Answer: (A)

Endorsements modify a policy to tailor coverage, including adding, broadening, or excluding specific risks. Because using an all-terrain vehicle in water introduces a distinct risk that standard language may not address, an endorsement can be added to exclude coverage for losses arising from that use. That makes the statement true: endorsements may be used to exclude coverage for all-terrain vehicles used in water. The other options overlook how endorsements function—they’re a common way to refine or limit coverage, not an absolute blanket that never applies.