Which of the following is an example of a policyholder?

Prepare yourself for the TSA Business Management Exam. Engage with flashcards and comprehensive multiple-choice questions, each supplemented with hints and explanations. Ace your test!

The choice that represents an example of a policyholder is a homeowner with a home insurance policy. A policyholder is an individual or entity that owns an insurance policy. This ownership means they have taken out a policy to protect themselves or their assets against specific risks, such as damage or loss.

In this scenario, the homeowner has entered into a contractual agreement with an insurance company to secure coverage for their home. This agreement obligates the insurance provider to offer financial protection in the event of a claimable incident, such as a fire or theft.

The other scenarios provided do not illustrate policyholders because:

  • A person buying a car does not mean they have insurance; they may be in the process of purchasing the vehicle but haven't necessarily taken out an insurance policy yet.

  • A person investing in stocks is engaging in a financial activity unrelated to insuring an asset and therefore does not meet the criteria for being a policyholder.

  • A company providing services may have various insurance policies but is not defined strictly as a policyholder without a specific context of the policies it holds.

Thus, the correct answer effectively highlights the relationship between a homeowner and the insurance policy they possess.

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