In insurance terminology, what does a 'policyholder' refer to?

A 'policyholder' refers to the entity that purchases an insurance policy and holds the rights granted by that policy. This individual or organization is responsible for the terms of the contract, including compliance with its conditions and the payment of premiums. The policyholder has the authority to make changes to the policy, file claims, and receive benefits or compensation as specified in the agreement with the insurance company. This definition encapsulates the essence of being a policyholder, as it highlights the proactive role they play in the insurance process.

While the option about the representative of the insurer is important in understanding the overall insurance dynamic, it distinctly refers to the insurer’s agent or broker, rather than an individual purchasing insurance. Similarly, the insured property is a separate concept, referring specifically to the items covered under the policy, while the option concerning the responsibility for premium payment, while true for the policyholder, is more of a responsibility than the core definition of a policyholder themselves.