Ace the 2026 Washington State Insurance Exam – Insure Your Success Today!

A policyholder is defined as the individual or entity that owns an insurance policy. This ownership implies that the policyholder has the legal rights and obligations associated with the policy, including making premium payments, modifying coverage, and filing claims when needed.

This distinction is crucial in the insurance industry because the policyholder is the one who has entered into a contract with the insurance company, thereby enabling them to receive coverage and benefits stipulated in the policy.

The other options revolve around interactions with the policy but do not clarify ownership. For instance, a person making claims is acting as a beneficiary under the contract but does not necessarily hold ownership of the policy. An individual on an insurance agent team plays a role in selling or managing policies but does not own the policy themselves. Similarly, someone providing claims adjuster services is responsible for assessing claims but is not recognized as the policyholder since they do not own the insurance policy. Thus, ownership is the key element that makes the second choice the correct answer.