T-Level Finance 1.2 Practice Test

To receive compensation for a covered loss, a policyholder must submit a claim to the insurance company. This process initiates the insurer's review of the loss and determines whether it is covered under the terms of the policy. Providing detailed information about the incident, such as the circumstances of the loss and any relevant documentation, enables the insurance company to assess the validity of the claim and facilitate the compensation process efficiently.

Filing a complaint with the insurance agent would not address the need for compensation directly and would likely delay any potential resolution. Not notifying the insurance company is counterproductive, as the insurer needs to be informed of the incident to consider any claims. Requesting an increase in premium also does not relate to seeking compensation for a loss; rather, it pertains to adjusting the cost of coverage without directly addressing a claim. Thus, submitting a claim is the essential step for a policyholder seeking compensation for a covered loss.