Los Angeles Claims Adjuster Property and Causality Practice Exam

What circumstances define a third-party claim?

1. Claims made against a policyholder's insurance company

2. Claims made for property damage to the insured's own vehicle

3. Claims that involve two insurance companies

4. Claims made by the policyholder to their own insurance provider

The correct answer is: Claims made against a policyholder's insurance company

A third-party claim arises when an individual or entity (the third party) files a claim against another person's insurance policy due to damages or injuries caused by the insured's actions. In this context, the first party is the insured, the second is the insurance company, and the third party is someone who was harmed and seeks compensation. When claims are made against a policyholder's insurance company, it signifies that the third-party claimant seeks to recover losses for damages or injuries inflicted by the insured. This scenario is essential in understanding liability and how insurance coverage will respond to claims made against the policyholder by others. The other options involve situations where the claim is either made by the insured or pertains to their own property, which does not fit the definition of a third-party claim. For example, claims for property damage to the insured’s own vehicle are not third-party claims, as they concern the insured's interests against their own policy. Similarly, claims made by the policyholder to their own insurance provider represent first-party claims, while claims that involve two insurance companies do not directly describe the nature of a third-party claim, as they typically pertain to negotiations between those companies rather than individual claimants seeking compensation from an insured party's policy.