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

How do insurance rate determinations take place?
What are the legal requirements for insurance contracts?
What is the role of an insurance examiner?
What is the difference between a contract and an insurance policy?
What are the penalties for not paying an insurance premium?
What is required to cancel an insurance policy?
What are the different types of insurance policies?
What is the difference between an insurance policy and a warranty?
What is the regulation of insurance companies?
How does the law protect insurance policyholders?

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

Related FAQs

Related Blog Posts