What best defines a policyholder?

• A. A person who files a claim against an insurer
• B. An insurance agent representing clients
• C. An individual or entity that owns an insurance policy
• D. A government agency regulating insurance practices

Answer: (C)

A policyholder is best defined as an individual or entity that owns an insurance policy. This term refers specifically to the person or organization that purchases and possesses insurance coverage, giving them rights and obligations related to that policy. The policyholder is responsible for paying premiums and is entitled to the benefits provided under the policy, such as claims for losses covered by the insurance. This ownership establishes a contractual relationship with the insurance provider, ensuring that the policyholder is protected against specified risks in exchange for the payment of premiums.

The other choices describe different roles related to insurance but do not capture the essence of what it means to be a policyholder. For example, a person who files a claim is simply taking action on their policy and does not necessarily define ownership. An insurance agent acts on behalf of clients but is not the owner of the policy. Lastly, a government agency regulating insurance practices plays an oversight role and does not pertain to individual ownership or responsibilities associated with a policy.