What is the difference between a claim and a lawsuit?

A claim and a lawsuit are two separate legal matters that individuals may seek when pursuing financial compensation for losses. A claim is when an individual or business files a formal request to an insurance provider to seek reimbursement for losses due to an accident or other event. The insurance provider then reviews the claim and, if accepted, pays out the agreed-upon amount to the policyholder. A lawsuit, on the other hand, is when an individual or business files a civil action in court against another party. This action is taken when the individual or business feels that they have suffered a loss due to the negligence, misconduct, or wrongful act of another party. A lawsuit must be proven before the court renders a judgement in favor of the plaintiff or the individual or business making the claim. In Mississippi, any claims or lawsuits must be filed within three years of the incident or claim, or risk being time-barred. A claim and a lawsuit are both valid legal avenues a person may take in order to receive restitution, but they are different in their scope and application.

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What is the difference between a claim and a lawsuit?

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