When an adjuster deals with a claimant who is not a policyholder, this claim is known as a?

When an adjuster deals with a claimant who is not a policyholder, this claim is known as a?

• A. First party claim
• B. Third party claim
• C. Subrogation claim
• D. Direct claim

Answer: (B)

When the person making the request for payment isn’t the policyholder, the claim is a third-party claim. This occurs in liability situations where someone else (a non-policyholder) seeks compensation from the insured’s liability policy, such as a pedestrian or another driver filing a claim with the at-fault driver’s insurer. In contrast, a first-party claim is filed by the insured with their own insurer for losses covered by their policy. Subrogation is a separate process where the insurer, after paying the insured, recovers those funds from the at-fault party or that party’s insurer. Direct claim isn’t the standard term used for this scenario.

When the person making the request for payment isn’t the policyholder, the claim is a third-party claim. This occurs in liability situations where someone else (a non-policyholder) seeks compensation from the insured’s liability policy, such as a pedestrian or another driver filing a claim with the at-fault driver’s insurer.

In contrast, a first-party claim is filed by the insured with their own insurer for losses covered by their policy. Subrogation is a separate process where the insurer, after paying the insured, recovers those funds from the at-fault party or that party’s insurer. Direct claim isn’t the standard term used for this scenario.