Definition of Contract holder:
A contract holder is an individual or organization owed a return on a contractual obligation. If all parties meet the terms of the contract, the contract holder receives the full benefits outlined in the contract. In broad terms, a contract holder owns a promise of a financial return on a specified date, usually in return for something of value.
Individual or organization named as the owner of a debt obligation or fund anticipated to receive a return in the future. The contract holder receives any compensation or benefits outlined in the contract as long as all terms and conditions are met.
Most often, the term contract holder refers to insurance. In insurance, the policyholder is the contract holder. The insurance company promises to provide various financial benefits in return for a regular payment from the policyholder. The financial benefit may be a death benefit in a life insurance policy, partial payment of medical bills in a health insurance policy, and paid replacement in a property liability policy.
How to use Contract holder in a sentence?
- If the terms of the contract are not met, the contractor may lose some or all of the payment that they would otherwise receive.
- A contract holder is the entity who is owed a payment in return for the fulfillment of the terms of a contract.
- The term contract holder is most commonly applied to insurance contracts, but can also be used in other types of finance.
Meaning of Contract holder & Contract holder Definition