Who files first party claims?

A first-party claim is a type of insurance claim that is filed directly by the policyholder against their own insurance policy. This occurs when the insured seeks benefits from their own insurer to cover losses or damages to their property or for covered liabilities.

When a policyholder experiences a loss (such as damage to their home or car), they initiate a claim process to seek compensation based on the terms of their policy. The insurer then evaluates the claim based on the coverage provided and the details of the incident reported by the policyholder. This interaction defines the essence of a first-party claim.

In contrast, other options involve parties that do not fit the definition of a first-party claim. A third party not named on the policy cannot file a first-party claim, as they do not hold the insurance contract. An insurance agent typically acts on behalf of the policyholder to facilitate claims or sell policies but doesn't file a first-party claim himself. Lastly, while an insurance company may file claims, it typically does so on behalf of a policyholder only in the context of insurance adjustments or subrogation, not as a first-party claim.

Hence, the choice of a policyholder filing against their own insurance policy accurately reflects the nature of first-party claims.