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| Policyholder | The individual or entity that owns the insurance policy. | John Doe, who owns a car insurance policy. |
| Premium | The amount paid by the policyholder to the insurance company for coverage. | $500 annually for car insurance. |
| Coverage | The protection provided by the insurance policy against specific risks. | Coverage for car accidents, theft, and damage. |
| Claim | A request made by the policyholder to the insurance company for payment. | John files a claim after a car accident. |
| Deductible | The amount the policyholder must pay out-of-pocket before the insurance pays. | $1,000 deductible for car accident repairs. |
| Payout | The amount the insurance company pays to the policyholder for a covered claim. | Insurance pays $4,000 for car repairs after John pays the $1,000 deductible. |
This table breaks down the key components of an insurance policy and provides a brief description and example for each. You can create similar tables for different types of insurance, such as health, life, or home insurance, to help explain their specific components and processes.
