What is the difference between a policyholder and an insured?

The terms policyholder and insured are often used interchangeably and can be confusing when discussing insurance coverage and claims in Arkansas. In general, the policyholder is the person or entity that owns the insurance policy and is legally responsible for making payments on the policy. The policyholder is also legally responsible for any decisions made regarding the policy, such as adding or removing coverages, changing the policy’s limits, or cancelling the policy. The insured is the person or entity that is protected by the insurance policy in the event of a loss. The insured can be the same as the policyholder, such as in the case of an individual having their own auto insurance policy, or they can be different, such as in the case of a business being insured by a group commercial policy held by the owner or manager of the business. If there is a claim made under the policy, the insured is the individual who will receive the benefits of the policy or the party responsible for the damages covered by the policy. Ultimately, both the policyholder and the insured are important to the insurance policy. The policyholder is responsible for making sure the policy is paid and up-to-date, while the insured is the beneficiary of the policy and is responsible for making sure the policy meets their coverage needs.

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What is the difference between a policyholder and an insured?

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