POLICYHOLDERS Meaning and
Definition
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Policyholders are individuals or entities who purchase an insurance policy from an insurance company, thereby becoming the insured party. They enter into a contractual agreement with the insurer, agreeing to pay regular premiums in exchange for coverage against specified risks or financial losses. The policyholder is the person or organization that holds the rights and benefits of the insurance policy.
As policyholders, individuals obtain insurance coverage to protect themselves and their assets from potential risks, such as accidents, illnesses, property damage, legal liabilities, or death. Insurance policies vary in nature and are available for diverse purposes, such as health, life, auto, property, or liability insurance, among others. In all cases, policyholders are obliged to abide by the terms and conditions outlined in the policy contract.
Policyholders have certain rights and responsibilities that come with their insurance coverage. They have the right to seek clarification and information about their policy, coverage details, and benefits. Policyholders also have the duty to provide accurate and truthful information during the application process or when filing a claim. They must comply with the stated rules and conditions and pay the premiums within the specified time frame to keep the coverage active.
In case of an insured event covered by the policy, policyholders have the right to submit a claim to the insurer, provided it falls within the policy's coverage scope. The insurance company then reviews the claim and, if approved, compensates the policyholder according to the terms and limitations of their policy agreement.
Common Misspellings for POLICYHOLDERS
Etymology of POLICYHOLDERS
The word "policyholders" is a compound noun that consists of two elements: "policy" and "holders".
The word "policy" originates from the Old French word "policie", which meant "government" or "political organization". It further derives from the Latin word "politia", meaning "citizenship" or "administration". Over time, the term "policy" acquired the specific meaning of an agreement or contract issued by an insurance company to protect against specific risks.
The word "holders" is the plural form of the noun "holder", and it comes from the Old English word "holdere", which means "a possessor" or "a person who holds or owns something".
Combining these two elements, "policyholders" refers to individuals or entities who own or possess insurance policies.
Similar spelling word for POLICYHOLDERS
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