The figure of the policy holder is something that raises many doubts. In this text, we explain everything you need on the subject.

The policyholder is the third party in a relationship between the insured and the insurer. The number 3 in an equation that usually has only two factors.

You’ll understand why soon. Throughout the text, we also talk about the functions of the policyholder of an insurance policy. Keep reading!

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Understand what an insurance policyholder is

The policyholder is nothing more than someone who represents a group of policyholders before an insurer. 

Usually, insurance is contracted directly with an insurance company. Therefore, there are only two agents in the relationship: the insured and the insurer.

The most that happens is that the relationship has an insurance broker. But he just does the marketing of protection.

But things change when the goal is to take out group insurance. If the protection is collective, it means that it will have a single contract, and several people will be included in this policy.

If the insurance will have a single contract, someone must be responsible for negotiating it, representing everyone who is part of the group. This is the insurance policyholder.

Normally, the stipulator is a union or company. But he can also be a natural person.

The figure of the policyholder is very common, especially in life insurance and insurance or health plans.

When the stipulator is a union, this union negotiates with the insurer all the terms of the contract. So, subscription to the service is made available to all members of that working class.

The same goes for representative bodies, associations, professional councils and the like.

All individuals who adhere to the contract are responsible for paying off the amounts monthly.

In the case of companies, they, as insurance policyholders, contract the desired protection. Then, it makes the service available to its employees, with or without co-payment.

Basically, the amounts are deducted from the employee’s payroll for payment to the insurance company.

Although health and life insurance rely more on an insurance policyholder, other protections can as well. Such as auto insurance, travel insurance , cargo insurance, etc.

What does the insurance policyholder do?

As we said, the policyholder is only present in collective insurance plans. He has several “tasks” to be performed, which ensures the continuity of coverage by the insurer. 

Below, we discuss these functions of the policy holder.

Insurance quotation and negotiation

It is the insurance policyholder who does all the insurance quotation and negotiation with the operator. Including indicating the desired coverage, payment terms, number of lives that will be covered and more.

After this negotiation, the policy holder sends the insurance policy made available to the applicants. Then, with the individuals on board, he adds each one to the contract and signs the policy.

Payment to the insurance company

It is also this figure who receives payment amounts from policyholders and passes them on to the insurer.

In the case of a union, association or similar, individuals pay the policyholder directly. The same if that individual is a natural person.

Meanwhile, in companies, the amount to be paid to the insurer is deducted directly from the individual’s payroll.

Claim resolution

When a covered claim occurs, it is the role of the policyholder to inform the insurer. He will be able to initiate the indemnity process and inform the insured of the next steps.

Anyway, it is worth saying that it is also common for the user to be able to do this alone. Therefore, it is important to pay attention to the company’s service channels and what determines the insurance policy .

Contract update

When information about an insured changes, it needs to be updated in the insurance contract. Any and all information.

For example: if the individual moved house, position in the company, modified the vehicle (in the case of auto insurance), if he was diagnosed with a health problem (in life and health insurance) and so on.

All data about the user directly influence the price of insurance. If they are not reported to the insurer, the company may later claim user fraud. The result would be the denial of compensation after a claim.

Information to policyholders

Just as he must inform the insurer of all changes and updates, the policyholder must do this with the policyholders.

That is, if there is an increase in costs, changes in rules or coverage and more, he needs to inform individuals. That way, everyone will always know what they can count on.

What are the differences between a policyholder and an insurance broker? 

To understand the difference between the stipulator and the insurance broker, understand that, in case of claims, the insurance broker can help you, if you want, by telephone, long distance. While the insurance policyholder needs to be present to sign. 

It is worth mentioning that the policy holder is available for contracts carried out by associations, unions and other types of group insurance. It is important to know exactly what the insurance policyholder is so as not to have any doubts, especially if an accident occurs. 

So now you know who the insurance policyholder is! When in doubt, question the insurers about the matter and consult SUSEP .

Proof of relationship with the stipulator 

In the case of group auto insurance, it is essential to prove the bond you have with the policyholder. Only then can the contract be released by the insurers. 

After all, at certain times it may be necessary to prove this link, which may be through association with a certain union, employment relationship or others. 

If you still have questions, talk to an insurance broker or contact the insurer. Be sure to pay attention to what is in your policy to avoid surprises.