Differentiate first-party and third-party claims.

Differentiate first-party and third-party claims.

• A. First-party claims are filed by the insured with their own insurer; third-party claims are asserted against the insured's liability insurer by others.
• B. First-party claims are filed by the insurer against the insured.
• C. First-party claims are limited to property claims only.
• D. Third-party claims are filed by the insurer against third parties.

Answer: (A)

First-party vs. third-party claims hinge on who is making the claim and who is protected. First-party claims are filed by the insured with their own insurer for benefits under their policy—like paying for repairs to the insured’s own property or medical expenses after a covered loss. Third-party claims are filed by someone else against the insured’s liability insurer, seeking damages for injuries or losses the insured is alleged to have caused. So the description that matches is that first-party claims are filed by the insured with their own insurer, while third-party claims are asserted against the insured’s liability insurer by others. The other statements don’t fit: a claim isn’t filed by the insurer against the insured in this context; first-party claims aren’t limited to property; and third-party claims aren’t filed by the insurer against third parties.

First-party vs. third-party claims hinge on who is making the claim and who is protected. First-party claims are filed by the insured with their own insurer for benefits under their policy—like paying for repairs to the insured’s own property or medical expenses after a covered loss. Third-party claims are filed by someone else against the insured’s liability insurer, seeking damages for injuries or losses the insured is alleged to have caused. So the description that matches is that first-party claims are filed by the insured with their own insurer, while third-party claims are asserted against the insured’s liability insurer by others. The other statements don’t fit: a claim isn’t filed by the insurer against the insured in this context; first-party claims aren’t limited to property; and third-party claims aren’t filed by the insurer against third parties.