What term describes a company that provides insurance coverage to policyholders?

The term that describes a company providing insurance coverage to policyholders is "insurer." An insurer is a financial institution that underwrites insurance policies, accepting the risk associated with those policies in exchange for premium payments from policyholders. Insurers can take many forms, ranging from large corporations to mutual associations, and they play a critical role in the risk management process by providing financial protection to individuals and businesses against specified losses.

In contrast, the other options refer to different roles within the insurance industry: an agent acts as a representative for the insurer, selling and servicing policies, while a broker acts as an intermediary between the consumer and multiple insurers to find the best coverage options. An adjuster is responsible for evaluating claims made by the policyholder and determining the insurer's liability under the policy. Understanding these distinctions helps clarify the essential function of an insurer within the insurance framework.