What is a claim in the context of insurance?

In the context of insurance, a claim refers to a request for payment or compensation made by the policyholder to the insurance company due to a loss that is covered under the terms of the insurance policy. When an individual experiences a loss—such as damage to property, a health-related expense, or some other covered event—they submit a claim to the insurer, detailing the nature of the loss and asking for the financial compensation stipulated in their policy.

This concept is fundamental in the insurance industry, as it represents the enforcement of the coverage agreement between the insurer and the insured. By filing a claim, the policyholder is effectively seeking to utilize the protective benefits for which they have been paying premiums.

The other options relate to different aspects of insurance but do not accurately define what a claim is. A request for a policy change pertains to alterations in the terms or coverage of an existing policy, a renewal of an insurance contract refers to the process of extending coverage beyond its original term, and a statement of policy benefits details what the policy covers, but none of these represent the action taken by the policyholder in response to a loss situation.