What is the difference between a policyholder and an insured?

The terms “policyholder” and “insured” are both used in the context of insurance regulation law in South Carolina. Generally speaking, the policyholder is the person or party who has entered into an agreement with the insurance company and has purchased an insurance policy. The policyholder is responsible for making payments to keep the policy in effect. The insured, on the other hand, is the person or party who is the beneficiary of the insurance policy, and who the insurance company agrees to pay in the event of a covered loss. In other words, the policyholder pays for the insurance policy and the insured benefits from the policy. For example, a parent might purchase an insurance policy on their teenage child. The parent would be the policyholder and the child would be the insured. If the child was involved in a car accident that was covered by the policy, the insurance company would pay the claim to the child, as the insured. Insurance regulation law in South Carolina also requires that the insured and policyholder be named in the insurance policy. This ensures that both parties agree to the terms and coverage set out in the policy, and that the insurance company knows who to pay in the event of a claim.

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What is the difference between a policyholder and an insured?

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