What is the difference between a policyholder and an insured?

The difference between a policyholder and an insured in California insurance claims law is that a policyholder is the person or entity who purchased or holds the insurance policy, whereas an insured is a person or entity who is covered under the terms of the insurance policy. A policyholder is responsible for the payment of monthly, quarterly, or annual premiums, and may be an individual, business, or organization. The policyholder is entitled to receive the insurance benefits if a claim is made and approved. An insured, on the other hand, is the person or persons who benefit from the policyholder’s insurance policy. Insureds are typically the people listed on the policy declaration page and include beneficiaries, spouses, and children. An insured is not responsible for paying premiums, but does receive the benefits listed in the policy in the event of a claim. In California insurance claims law, the policyholder and insured have distinct and separate roles.

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