Can an insurer or producer modify a policy?

The correct answer states that an insurer or producer may not modify a policy. This is rooted in the principles of insurance contracts, which are legally binding agreements between the insurer and the policyholder. Once a policy is issued, the terms and conditions become fixed as agreed upon by both parties. Any modifications typically require consent from both the insurer and the insured, which often means that formal endorsements or amendments must be documented to ensure clarity and avoid confusion.

In practice, while insurers do have the ability to make changes to policies, particularly at renewal or when policyholders request modifications, they cannot unilaterally alter the terms of an existing policy without the policyholder’s consent. This maintains the integrity and reliability of the insurance product, protecting both the insurer and the insured from unilateral changes that could affect coverage levels or rights.

This principle supports the idea that once a policy is accepted and in force, it carries expectations from the policyholder that the coverage will remain as originally stated unless mutually agreed upon by both parties. Thus, modification is not arbitrary or always permissible, confirming the rationale behind the selected answer.