What is the difference between first-party and third-party insurance litigation cases?

In California, insurance litigation cases can involve either first-party claims or third-party claims. A first-party claim is when an individual or business files a lawsuit against their own insurance company. This usually occurs when the insurer denies a claim or fails to pay out the entire agreed-upon amount. A third-party claim occurs when an individual or business files a lawsuit against another individual or business with whom they have a contract. This may be the result of an accident or injury caused by the third-party, or it may stem from breach of contract by the third-party. The lawsuit is typically filed to obtain financial compensation for the damages incurred by the plaintiff. The difference between first-party and third-party insurance litigation cases lies in their respective focus and purpose. First-party cases are focused on obtaining payment from the insurance company, while third-party cases are focused on obtaining payment from the other individual or business. Furthermore, in the case of third-party claims, the court may also award punitive damages if the act in question was deemed to have been committed intentionally.

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What is the difference between first-party and third-party insurance litigation cases?

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