Rhode Island Insurance Adjuster Exam

Which of the following best defines a claim in an insurance context?

1. A demand for payment under an insurance policy

2. A document signed by the policyholder

3. A type of insurance coverage

4. A legal action against an insurer

The correct answer is: A demand for payment under an insurance policy

In the context of insurance, a claim is specifically a request made by the policyholder to the insurer for payment based on the terms stipulated in the insurance policy. This definition captures the core function of a claim, which is to seek compensation or coverage for a loss that the policyholder believes falls under their insurance contract. Making a claim initiates the process where the insurer assesses the circumstances surrounding the loss and determines the validity of the request. While the other options refer to relevant aspects of insurance, they do not encapsulate the essence of what a claim is. For instance, a signed document by the policyholder may be necessary when filing a claim, but it does not define what a claim is. Similarly, insurance coverage refers to the protection provided by the policy itself, and legal actions against an insurer typically arise after disputes over claims but do not define a claim. Therefore, the definition that a claim is a demand for payment under the policy is the most accurate in this context.