Rhode Island Insurance Adjuster Exam

Who is responsible for a claim in a third party situation?

1. The claimant's insurance

2. The at fault party's insurance

3. The insurance agent

4. The injured party

The correct answer is: The at fault party's insurance

In a third-party claim situation, the responsibility for handling the claim typically falls to the insurance of the party that is at fault for the incident causing the claim. This is because the role of third-party insurance is to protect against liability incurred by the insured party. When an individual causes damage or injury to another person, the affected party can file a claim with the at-fault party's insurer, who will then evaluate the claim and determine compensation based on the coverage provided. The basis for this understanding lies in the principles of liability insurance, which is designed to cover legal responsibilities arising from the insured’s actions. The at-fault party’s insurance is there to handle claims from third parties who suffer injuries or damages as a result of the insured's actions, making it the primary source of compensation in these situations. While the injured party may pursue their claim through their own insurer, particularly in contexts where they have uninsured or underinsured motorist coverage, ultimately it is the at-fault party’s insurance that is charged with responding to the claim from the other party involved. The other options do not align with the responsibilities traditionally assigned in insurance claims handling in third-party scenarios.