In an insurance policy, what does the term "policyholder" indicate?

• A. The insurer providing the coverage
• B. The individual who holds the insurance contract
• C. The agent selling the insurance
• D. The party liable for claims

Answer: (B)

The term "policyholder" refers specifically to the individual or entity that holds the insurance contract. This person or organization is responsible for paying the premiums and is entitled to the benefits of the policy as outlined in the contract. The policyholder has the rights to make changes to the policy, file claims, and receive any benefits due in the event of a covered loss.

Understanding who a policyholder is crucial when discussing insurance, as they are the primary party interacting with the insurer. This role is distinct from that of the insurer, who is the provider of the coverage, or the agent, who facilitates the sale of the insurance. The agent does not hold the policy and typically acts on behalf of the insurer, while the party liable for claims in an insurance context would generally refer to the insurer, not the policyholder.