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

The key distinction lies in the nature of the claims regarding whose interests are represented and which entity is being held responsible. First-party claims are filed by an insured individual against their own insurance provider to receive compensation for a loss covered by their policy, such as damage to their vehicle or property. This relationship often encompasses scenarios where the policyholder seeks benefits directly from their insurer based on the terms of their coverage.

In contrast, third-party claims involve situations where an individual seeks compensation from another person's insurance company due to damages or losses caused by that third party. This means that in a third-party claim, the person filing the claim is not the insured party but is seeking redress for damages caused by someone else's actions.

The other options do not accurately capture the fundamental difference between first-party and third-party claims, as they either misrepresent or limit the scope of the claims in question. Understanding this distinction is crucial for anyone involved in the insurance industry, particularly for insurance adjusters, as it directly impacts the claims process and the responsibilities of the parties involved.