What is the term used when a policy specifies the use of OEM or aftermarket parts?

The term used when a policy specifies the use of OEM (Original Equipment Manufacturer) or aftermarket parts is an endorsement. An endorsement is a document that adds or changes coverage or terms within an insurance policy. In the context of auto insurance, an endorsement can dictate whether repairs must use OEM parts, aftermarket parts, or any combination thereof.

While terms like clause, provision, and specification can refer to different components within a contract or policy, they do not have the same specific implication as an endorsement does in insurance language. A clause typically refers to a distinct section of a legal document that addresses a particular issue, while a provision indicates a specific stipulation or requirement within that section. Specification, on the other hand, often refers to detailed descriptions or requirements but doesn’t inherently imply a modification to the existing policy terms as an endorsement does. Therefore, the correct choice highlights the unique role that an endorsement plays in dictating the types of parts used for repairs within an auto insurance policy.