Meaning of "policy holder"

[Mirko]

English Language Proficiency Tests, Advanced Level

ESL/EFL Test #667 "Real Life: Insurance Terms (2)", question 1

A ......... is a person who is named by a policy holder and compensated by an insurance company when a policy holder dies. This person is the one who receives the money that is paid out by the insurance company.

(a) broker
(b) agent
(c) beneficiary
(d) bond

English Language Proficiency Tests, Advanced Level

ESL/EFL Test #667 "Real Life: Insurance Terms (2)", answer 1

A beneficiary is a person who is named by a policy holder and compensated by an insurance company when a policy holder dies. This person is the one who receives the money that is paid out by the insurance company.

Correct answer: (c) beneficiary
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what is a policy holder?

Mirko

[Linda]

Hello,
A policy holder is the person who takes out an insurance policy on his/her car, house, life etc. He/she is the person who pays an insurance company for the plan/policy coverage.
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