What is the difference between a policyholder and an insured?

The difference between a policyholder and an insured in Rhode Island is a legal distinction that is regulated by the Insurance Regulation Law. A policyholder is the entity that buys and owns the insurance policy. A policyholder’s rights and obligations are set in the policy document. A policyholder is often the same entity that is the insured. However, this is not always the case. On the other hand, an insured is the individual or entity that is covered by the policy. An insured is usually named in the policy and is the one that benefits from the policy when a covered event occurs. A policyholder may name an additional insured in the policy to provide financial protection for an individual or entity other than the policyholder. In Rhode Island, a policyholder and an insured have different rights and obligations under an insurance policy. The policyholder is responsible for making the premium payments and keeping the policy in force. The insured is the one who is typically covered when a covered event occurs and is the one that receives the benefits of the policy.

Related FAQs

What are the requirements for a company to be certified as an insurance provider?
What documents are necessary to obtain an insurance policy?
What is the role of the Consumer Financial Protection Bureau in insurance regulation?
What is reinsurance and how is it regulated?
What is the role of the Financial Conduct Authority (FCA) in insurance regulation?
What is the purpose of insurer solvency regulation?
What is the responsibility of an insurance agent?
What type of data is collected and used for risk evaluation in the insurance industry?
How does insurance regulation protect consumers?
How does the government ensure consumer protection in the insurance industry?

What is the difference between a policyholder and an insured?

Related FAQs

Related Blog Posts