Policyholder Protection Scheme
/ˈpɒlɪsiˌhoʊldər prəˈtɛkʃən skiːm/
Definitions
- (n.) A statutory or regulatory framework designed to safeguard policyholders’ interests by ensuring compensation or protection in case an insurance company fails.
The Policyholder Protection Scheme guarantees compensation to clients if their insurer becomes insolvent.
Forms
- policyholder protection scheme
- policyholder protection schemes
Related terms
See also
Commentary
Often established by law or regulation, the scheme typically limits losses to insured parties and maintains market confidence.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.