Legal Definitions - policyholder

A policyholder is the individual or entity that legally owns an insurance contract. This person or organization enters into an agreement with an insurance company, pays the premiums, and holds the rights and responsibilities associated with that specific insurance policy. They are the party to whom the insurance policy is issued, regardless of whether they are the person or thing being insured.

Here are some examples to illustrate the concept of a policyholder:

• Individual Car Insurance: Maria purchases an auto insurance policy for her new car. She pays the monthly premiums directly to the insurance company and has the authority to make changes to the policy, such as adding a new driver or increasing coverage. In this scenario, Maria is the policyholder because she owns the insurance contract and controls its terms.

• Life Insurance for a Family Member: David decides to buy a life insurance policy for his elderly mother, who is financially dependent on him. David pays all the premiums and is listed as the owner of the policy, even though his mother is the person whose life is insured. David is the policyholder because he holds the legal ownership of the insurance contract, giving him the right to manage it.

• Business Property Insurance: "Global Logistics Corp.," a shipping company, buys a comprehensive insurance policy to protect its warehouse, vehicles, and equipment from damage or theft. The company's finance department handles the premium payments and manages the policy details. Global Logistics Corp. is the policyholder because the company, as a legal entity, owns the insurance policy that covers its assets.