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

In Minnesota, the difference between first-party and third-party insurance claims is that first-party claims are filed by the policyholder, and third-party claims are filed by someone else. First-party claims are most often used when something happens to the policyholder’s property, which is covered by the policy. This can include damage caused by something like a fire or a natural disaster, or a theft or burglary. The policyholder can then make a claim to the insurance company to receive compensation for the damage or loss. Third-party claims are typically used when someone else is injured due to the negligence or intentional wrongdoing of the policyholder. In this case, the policyholder can be held legally responsible for the actions that caused the injury. The injured person can then file a third-party claim with the insurance company to receive compensation for their losses. The insurance company will then evaluate the claim and decide whether or not to provide the requested compensation. Depending on the type of insurance policy, the insurance company may be able to deny the claim or even cancel the policy. In either case, the injured person may choose to pursue the claim in court if the insurance company does not grant sufficient compensation.

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

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