The exercising of a policyholder’s right under a Legally binding contract effecting insurance or certificates thereof, including all clauses, riders, endorsements and renewals. to be paid by his or her insurance company for certain financial losses suffered. A claim can be any notification of a possible loss under an A written contract of insurance., whether or not any payment follows. For every claim that is reported, the insurance company must set aside money (“reserves”) sufficient to To protect with insurance, or the insurance protection provided. its anticipated cost.