Los Angeles Claims Adjuster Property and Causality Practice Exam

Which type of insurance claim involves a policyholder filing against their own insurance?

1. Third-party claim

2. First-party claim

3. Commercial claim

4. Negligence claim

The correct answer is: First-party claim

A first-party claim involves a policyholder filing against their own insurance policy. This type of claim occurs when the insured seeks compensation directly from their insurer for a loss that is covered under their policy, such as damage to their property or personal injury. Since the policyholder is the insured party, they are entitled to file a claim for covered losses without involving any third parties. In contrast, a third-party claim involves someone filing a claim against another person's insurance policy, usually in cases of liability where the insured party is held responsible for damages to another party. A commercial claim refers to claims made by businesses under their insurance policies, which may encompass various types of coverage but still typically falls under the broader categories of first-party or third-party claims. A negligence claim is a legal claim based on the concept that one party failed to exercise a reasonable standard of care, causing harm to another party, but it does not specify which insurance coverage is involved.