What is it called when an insurer adopts a provision that provides broader coverage automatically?

The process where an insurer adopts a provision that provides broader coverage automatically is referred to as liberalization. This term is significant in the insurance industry because it indicates that whenever an insurer changes a policy or introduces a new feature that enhances coverage, those benefits can extend to existing policyholders without the need for additional premium payments or amendments to their current contracts.

Liberalization is geared towards enhancing consumer protection and ensuring that policyholders benefit from improvements made in insurance policy offerings. This is particularly relevant when an insurer recognizes changes in market conditions or customer needs and seeks to provide better coverage options to maintain competitiveness and increase customer satisfaction.

In contrast, the other options don't accurately describe this process. Apportionment refers to dividing costs or responsibilities, appraisal involves assessing the value of property in the context of claims, and abandonment typically relates to the relinquishment of rights in a policy. Therefore, liberalization aptly identifies the automatic broadening of coverage by an insurer.