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

First-party and third-party insurance claims are two distinct types of claims with different processes and outcomes. First-party insurance claims are those that are filed directly by the policyholder seeking to receive benefits from their own insurance policy. In this type of claim, the policyholder is the plaintiff, and the insurance company is the defendant. The policyholder must prove that they are entitled to receive benefits from their policy, and the insurance company must prove that they are not liable for the claim. In contrast, third-party insurance claims are those that are filed by the policyholder against another person or company whose actions resulted in the policyholder’s injury or harm. In this type of claim, the policyholder is the plaintiff, and the other party is the defendant. The policyholder must prove that the other party is liable for the harm or injury and must also prove that the policyholder is entitled to payment. The outcomes of first-party and third-party insurance claims also differ. With a first-party claim, the policyholder may receive money from their own insurance policy to compensate for the harm or injury. With a third-party claim, the policyholder may receive compensation from the other party’s insurance policy if they are found liable for the harm or injury. In North Carolina, insurance law provides guidance for all types of insurance claims. It outlines the laws and regulations that must be followed when filing a claim, as well as the rights and responsibilities of the policyholder and the other parties involved.

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

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