What is First-Party Claim?
An insurance claim filed by a policyholder against their own insurance company for losses covered under their policy.
Understanding First-Party Claim
First-party claims are made directly with your own insurer, such as filing a claim under your collision coverage after an accident or under your homeowner's policy after a fire. The insurer has a duty of good faith and fair dealing when handling first-party claims, and unreasonable denials or delays can give rise to bad faith claims.
Examples
- 1Filing a collision claim with your own auto insurer after an accident
- 2Claiming uninsured motorist benefits from your own policy
- 3Submitting a PIP or med-pay claim to your own insurer
Related Terms
Third-Party Claim
An insurance claim filed against another person's or entity's insurance policy seeking compensation for damages they caused.
Personal Injury Protection (PIP)
No-fault auto insurance coverage that pays medical expenses and lost wages regardless of who caused the accident.
Medical Payments Coverage (MedPay)
Optional auto insurance that pays medical expenses for the policyholder and passengers regardless of fault, without the restrictions of PIP coverage.
Insurance Bad Faith
An insurance company's unreasonable denial, delay, or underpayment of a legitimate insurance claim in violation of its duty of good faith and fair dealing.
Reservation of Rights
A formal notice from an insurance company informing the policyholder that while they will investigate or defend a claim, they reserve the right to deny coverage or limit their obligations later.
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