What type of insurance clause extends broader coverage to policies without raising premiums?

The liberalization clause is a provision found in insurance policies that allows for broader coverage without an increase in premiums. This type of clause typically applies when an insurer revises its policy forms to offer enhanced coverage or benefits. When such changes are made, the liberalization clause automatically applies to existing policyholders, ensuring they benefit from the updated terms without any additional cost or the need to make amendments to their current policy.

This is particularly advantageous for policyholders, as it ensures they are covered by the most current and favorable provisions available. The purpose of this clause is to keep the insurer competitive and to ensure that all policyholders are treated fairly by receiving the best coverage options available at the time of the policy's issuance, regardless of when the policy was purchased.

The other options, while relevant in the context of insurance, do not serve the same purpose. For example, a rider clause would typically add specific coverage or benefits for an additional premium, while an exclusion clause specifically outlines situations or conditions that are not covered by the policy. An endorsement clause is a modification added to a policy, which can change the coverage but may also come with additional costs.