Los Angeles Claims Adjuster Property and Causality Practice Exam

Which type of claim is made directly by a policyholder against their insurance company?

1. Third-party claim

2. Subrogation claim

3. First-party claim

4. Public claim

The correct answer is: First-party claim

A first-party claim is one that a policyholder makes directly against their own insurance company. This type of claim occurs when the insured suffers a loss or damage that is covered under their policy, such as damage to their home or vehicle. The policyholder seeks compensation from their insurer based on the terms outlined in their insurance contract. This distinction is significant in the realm of insurance as it pertains to the relationship between the insured and the insurer. In a first-party claim scenario, the focus is on the direct benefits due to the policyholder, ensuring that they are compensated for their own losses as established in their insurance policy. Subrogation claims involve the insurer seeking reimbursement from a third party after paying a first-party claim, which does not apply in this context. Third-party claims are those made by an individual against someone else’s insurance policy, typically when the individual has suffered a loss due to the actions of the insured. Public claims are not a standard term within insurance practices and do not align with the definition of a claim made by a policyholder against their own insurer.