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

The difference between first-party and third-party insurance claims is the party that is filing the claim. In a first-party claim, the claimant is the policyholder or a beneficiary and the claim is being made directly against the insurance company. Examples of these claims are medical payments or no-fault claims, which are claims for expenses that occur as a result of an injury. In a third-party claim, the claimant is not the policyholder or a beneficiary, but a party outside of the policy. These claims involve seeking damages from the liable party’s insurance company. Examples of these claims are auto accidents or premises liability claims, which are claims involving injuries that result from someone else’s negligence. Under Texas law, insurance companies are required to investigate all claims in a timely manner and to pay any claims that are proved to be valid. If an insurance company wrongfully denies a claim, the policyholder or third-party may be able to sue the insurance company for breach of contract or bad faith. This means that Texas insurance laws protect policyholders and third-parties from unfair claims handling and treatment by insurance companies.

Related FAQs

What is insurance law?
What is an insurance company’s duty to act in good faith?
What is the difference between independent and captive insurance agents?
What is the difference between claims-made and occurrence insurance?
What is the difference between an insurance policy and a contract?
How do claims adjusters decide on the amount of coverage for an insurance policy?
What is the process of filing an insurance claim?
What legal recourse do I have if I am denied an insurance claim?
How can I protect myself from financial losses due to natural disasters?
What is the difference between an insurance claim and a lawsuit?

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

Related FAQs

Related Blog Posts