When damages or losses fall under the terms of an insurance contract, what right does the policyholder have?

The policyholder has an immediate right to claim payment according to the terms of the policy when damages or losses occur that are covered under the insurance contract. This right is fundamental to the purpose of insurance: to provide financial protection and compensation for specified risks and losses.

Upon the occurrence of a covered loss, the policyholder can submit a claim to the insurance company for reimbursement or direct payment, as defined in the policy. This allows them to receive the benefits they have been paying for in accordance with their policy's provisions. The efficiency and speed of this process are critical in allowing policyholders to recover from losses without unnecessary delay.

The other options reference procedures and conditions which do not describe the immediate rights of a policyholder under the insurance contract itself. For instance, the requirement of a wait period before filing a claim is not generally applicable and could hinder prompt response in times of need. The filing of a third-party claim and subrogation rights relate to the claims process but do not reflect the core entitlement of policyholders to seek payment for their losses promptly as per their policy's terms.