What is a claim?

What is a claim?

• A. A policyholder's request for a policy change
• B. A request for payment or benefits under a policy
• C. A document listing all covered risks
• D. A legal obligation to pay premiums

Answer: (B)

A claim refers to a request for payment or benefits made by a policyholder under their insurance policy. When a covered event occurs—such as damage to property, an accident, or a health issue—the policyholder files a claim to receive compensation or benefits as stipulated in their insurance contract. This process is essential because it is how insurance companies assess the situation, verify coverage, and fulfill their obligation to provide financial protection to the insured. The other options do not accurately reflect the definition of a claim. A policyholder's request for a policy change pertains to modifications in the terms or coverage of an existing policy, which is distinctly different from a claim. A document listing all covered risks describes the scope of coverage but does not signify a request for benefits. Lastly, a legal obligation to pay premiums refers to the financial responsibility of a policyholder to maintain their coverage but is unrelated to the process of making a claim, which is about receiving benefits rather than paying for the policy.

A claim refers to a request for payment or benefits made by a policyholder under their insurance policy. When a covered event occurs—such as damage to property, an accident, or a health issue—the policyholder files a claim to receive compensation or benefits as stipulated in their insurance contract. This process is essential because it is how insurance companies assess the situation, verify coverage, and fulfill their obligation to provide financial protection to the insured.

The other options do not accurately reflect the definition of a claim. A policyholder's request for a policy change pertains to modifications in the terms or coverage of an existing policy, which is distinctly different from a claim. A document listing all covered risks describes the scope of coverage but does not signify a request for benefits. Lastly, a legal obligation to pay premiums refers to the financial responsibility of a policyholder to maintain their coverage but is unrelated to the process of making a claim, which is about receiving benefits rather than paying for the policy.