What is the difference between a policyholder and an insured?

In North Carolina, the term “policyholder” refers to the individual or entity that has purchased an insurance policy from an insurance provider. The policyholder is legally responsible for the contract terms and conditions in the policy. The policyholder pays the insurance premium to the insurance provider. The term "insured" refers to the person or entity that is covered by an insurance policy. The insured is the individual or entity that is eligible to receive the benefits of the policy such as reimbursement for losses covered by the policy. It is important to note that the policyholder is not necessarily the same as the insured. For example, the policyholder may be an individual who purchased a car insurance policy, but the insured may be the driver of the car in the event of an accident. In North Carolina, policyholders are responsible for understanding the terms and conditions of their insurance policy, while insureds are the ones who actually benefit from the policy. The policyholder might be responsible for any losses that are not covered by the policy, but the insured will be the one who receives the coverage benefits. It is important to note that the policyholder and the insured both have rights and obligations under the insurance law.

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What is the difference between a policyholder and an insured?

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