New Jersey Life Producer Law Practice Test

In an insurance context, the policyholder is the person or entity that owns the insurance policy. This means that the policyholder holds the rights and responsibilities associated with the policy, including the obligation to pay premiums and the authority to make changes to the policy.

The policyholder is distinct from the insured, who is the individual or entity covered by the policy, and from the insurer, which is the company providing the insurance coverage. The agent serves as the intermediary who sells the policy but does not own it. Understanding this distinction is crucial for navigating insurance agreements, as the policyholder has the ultimate control over the policy.