What is a "policyholder" in the context of insurance?

A policyholder is defined as the person or entity that owns an insurance policy. This means that the policyholder is the one who pays the premiums and holds the rights and responsibilities associated with the insurance coverage. They have the authority to make decisions regarding the policy, such as making changes to coverage or filing claims.

Understanding this term is essential, as it clarifies who has the legal ownership of an insurance contract and who benefits from the coverage provided. In contrast, the options focusing on insurance payouts refer to beneficiaries, agents are representatives who sell insurance but do not own the policy themselves, and underwriting pertains to the evaluation of risk and determination of premium pricing, which is a separate function in the insurance process. This delineation helps in understanding the roles and responsibilities within the insurance framework.