Texas All Lines Adjuster Practice Test

Who is referred to as the policyholder?

1. An insurance agent

2. The person who purchases an insurance policy

3. An underwriting specialist

4. A government regulation authority

The correct answer is: The person who purchases an insurance policy

The policyholder is defined as the individual or entity that purchases an insurance policy. This role is significant because the policyholder is the one who enters into an agreement with the insurance company, securing coverage for certain risks in exchange for premium payments. This relationship means that the policyholder has certain rights and responsibilities, including the right to file claims and the obligation to pay premiums. The other roles mentioned, such as an insurance agent, underwriting specialist, and government regulation authority, do not hold the same standing as policyholders. An insurance agent acts as a representative who sells or conveys information about insurance policies but does not own them. An underwriting specialist evaluates insurance applications and determines the risk for the insurer, while a government regulation authority oversees compliance within the insurance market but does not engage in purchasing policies. Thus, only the person who purchases the insurance policy fits the definition of a policyholder.