Which term refers to a document that alters an insurance policy?

The correct term that refers to a document that alters an insurance policy is an endorsement. An endorsement modifies the terms, conditions, coverages, or limits of the original policy. It is used to add, remove, or adjust coverage specifics, thus tailoring the insurance policy to better meet the policyholder's needs.

For instance, if a policyholder wants to add coverage for a new piece of equipment, an endorsement would be issued to modify the existing policy to include that additional coverage. This flexibility is crucial for accommodating changes in the insured's circumstances or properties.

On the other hand, a binder is a temporary agreement that provides immediate coverage but does not alter the terms of the policy itself. Limitations refer to specific restrictions outlined in the policy, and exclusions denote circumstances or items that are specifically not covered under the policy. These terms do not serve the function of modifying the policy in the same way an endorsement does.