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Simple English definitions for legal terms
policyholder
Read a random definition: subject of an action
A quick definition of policyholder:
A policyholder is someone who owns an insurance policy. This means they have an agreement with an insurance company to protect them from certain risks, like getting sick or having their car stolen. The policyholder is the person or entity that the insurance policy is issued to, as stated in the certificate of insurance.
A more thorough explanation:
Definition: A policyholder is a person or entity that owns an insurance policy. They are also known as a policy owner. When someone enters into an insurance policy with an insurance company, they become the policyholder. The certificate of insurance will state who the policyholder is.
- John purchased a life insurance policy from XYZ Insurance Company. He is the policyholder and pays the premiums to maintain the policy.
- ABC Corporation bought a liability insurance policy from DEF Insurance Company. As the policyholder, ABC Corporation is protected from any legal claims made against them.
In both examples, the individuals or entities who purchased the insurance policies are considered policyholders. They are the ones who own the policies and are responsible for paying the premiums to keep the policies active. If a claim is made, the policyholder is the one who will receive the benefits of the policy.