What type of endorsement specifies the particular person to whom payment should be made?

A special endorsement is indeed the correct choice because it distinctly identifies the individual or entity to whom a payment must be made. When a check or negotiable instrument is endorsed with a special endorsement, it typically includes the signature of the original payee followed by the name of the person or organization to whom the check is now being transferred. This type of endorsement effectively narrows the focus of the payment, directing it to a specific recipient, which is crucial for clarity, accountability, and proper processing of financial transactions.

The other types of endorsements serve different purposes. A blank endorsement allows the check to be cashed or deposited by anyone in possession of it, which can lead to less security. A qualified endorsement adds certain conditions to the transfer of the check, often limiting liability. A conditional endorsement includes specific terms that must be met for the endorsement to be valid, creating additional complexities in the transaction.

Understanding these different types of endorsements helps clarify the mechanics of transferring financial instruments securely and legally, emphasizing the importance of the method of endorsement in financial practices.