Reimbursement of Insured
Definition - What does Reimbursement of Insured mean?
A reimbursement of the insured occurs when an insurance company refunds an amount of money that it owes to a policyholder. This refund could be for losses that the insured has experienced and that the insurance company is legally responsible the handle, for expenses incurred by the policyholder, or for other reasons.
Insuranceopedia explains Reimbursement of Insured
Insurance policies dictate that an insurance company will provide financial reimbursement for covered losses. This means that, if a policyholder experiences a covered loss, the insurance company must, by law, provide reimbursement to the insured. If an insurance company refuses to do so, the policyholder can then take it to court.
Insurance companies will sometimes reimburse policyholders for things like medical expenses that the insured paid for out of pocket, which can include fees for medications or covered treatments.