What constitutes a 'claim' in insurance terms?

In insurance terminology, a 'claim' refers specifically to a request made by the insured party to the insurance company for payment or compensation based on a covered event as stated in the policy. This may include incidents such as accidents, damages, losses, or other occurrences that warrant financial restitution under the terms of the insurance contract.

When an insured submits a claim, they are essentially informing the insurer that a covered incident has occurred and that they are seeking benefits as outlined in their policy. This process often involves the collection of evidence and documentation to support the claim, which the insurer will review to determine whether the claim is valid and the amount payable, if any.

The other options relate to important aspects of an insurance policy but do not define a claim. A report of policy renewal involves the continuation of coverage rather than a request for payment. A review of policy conditions pertains to understanding the terms and requirements of the insurance, but it does not involve seeking payment. An application for insurance coverage is the initial step in obtaining a policy, not a claim made under an existing policy.