What is the difference between a policyholder and an insured?

A policyholder and an insured are two terms used in insurance regulation law in Alaska, that have different meanings. A policyholder is the person or entity that owns the insurance policy. They are the ones responsible for making payments towards the policy each month, or whatever term of payment they have agreed to. They are the ones that will benefit from the policy and receive the payout in the event of a claim. An insured is the individual, business, or property that is named in the policy and is protected by it. They are the ones that the policyholder is paying for coverage. The policyholder will be responsible for paying for any claims the insured may file, up to the limit of the policy. For instance, if an individual buys a car insurance policy, they would be the policyholder, and the car would be the insured. The policyholder would pay for the policy and be the one to receive the claim payout in the case of an accident, while the car itself would be protected under the policy.

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What is the difference between a policyholder and an insured?

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