Mississippi Property & Casualty Practice Exam 2026 – Comprehensive Prep Guide

The term "policyholder" refers to the individual or entity that owns an insurance policy. This is the party with whom the insurance company has a contractual agreement, entitling them to coverage as stipulated in the policy. The policyholder has specific rights and responsibilities, including the ability to file claims, make premium payments, and modify the policy as needed.

In this context, while the person responsible for paying premiums is often the policyholder, it is not a defining characteristic; an authorized person could manage payments without being the owner. Similarly, while an individual who files a claim might generally be the policyholder, there may be circumstances where someone else files a claim on behalf of the policyholder. The insurance agent, meanwhile, is not the policyholder but rather a representative of the insurance company who assists with the management of policies and client relations. Thus, recognizing that the core aspect of being a policyholder is owning the insurance policy clarifies why the correct answer highlights ownership.