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Policyholder

   Also found in: Dictionary/thesaurus, Acronyms 0.01 sec.
Policyholder
An individual who owns an insurance policy.

Policyholder
A person or (less commonly) an organization that has an insurance policy. The policyholder receives the specific types of coverage (life, health, etc.) stated in the policy, subject to the payment of premiums, usually on a monthly basis. It is important to note that a policyholder does not make any legally enforceable promises when he/she takes out a policy. Specifically, the insurance company cannot legally compel the policyholder to pay his/her premiums; its only recourse is to stop coverage. On the other hand, the policyholder can force the insurance company to provide coverage if it refuses to do so, provided he/she has in fact paid premiums.


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However, about a third of the 900 policyholders of the JUA challenged the state's claim to the money, insisting that the roles governing the fund and the terms of their insurance contracts required its board of directors to distribute any declared surplus to the policyholders, much like a mutual insurance company would do.
Furthermore, the limitation doesn't apply to death benefit amounts used to purchase an equity interest in the applicable policyholder from a family member, trust or estate.
Policyholders had already suffered lengthy delays before last summer's offer, which came after 18 months of complex negotiations between Norwich Union and the independent policyholder advocate.
 
 
 
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