Who is referred to as a Policyholder?

A policyholder is defined as a person or entity that holds an insurance policy, which means they are covered by the insurance provided under that policy. This individual or organization has the rights and responsibilities associated with the insurance contract, including making claims when covered events occur. In this context, the term explicitly refers to those who have secured insurance coverage, distinguishing them from other parties involved in the insurance process.

While it is true that an individual responsible for paying premiums is crucial to maintaining the insurance policy, this description does not encompass the entire definition of a policyholder. Similarly, an insurer, which provides the coverage, and an agent, who sells the policy, do not qualify as policyholders. The policyholder is the entity that benefits from the insurance protection and has a direct relationship with the insurer defined by the policy agreement.