What does a "Claim" represent in health insurance?

A "Claim" in health insurance represents a notification to the insurer for a covered loss payment. When a policyholder receives medical treatment, they submit a claim to their insurance company to request payment for the services received. This notification includes details about the treatment, the cost, and how it aligns with the terms of the policy. It serves as an official request for the insurance company to review the case and provide compensation according to the coverage agreement.

The other options relate to different aspects of insurance processes. A request for policy cancellation pertains to the termination of an insurance policy rather than seeking payment. The process of applying for benefits involves multiple steps that may not necessarily include a claim for payment as defined in health insurance. An agreement to settle disputed claims speaks to conflict resolution and dispute management but does not specifically define what a "Claim" represents in the context of health insurance. Thus, the definition provided accurately captures the essence of a claim as it relates to insurance.