Market agreement between participating motor insurers. Where two motorists are involved in an incident and third parties are injured, the insurers agree not to apportion blame but share third party claims equally. Any injury to the driver of either vehicle or any injury to any employee of the insured is excluded by the agreement.
Insurance Encyclopedia
Third Party Sharing Agreements
Agreements between liability insurers that when their respective policyholders are involved in an occurrence giving rise to a third party claim, any settlement will be shared between the insurers without apportionment of blameworthiness.
Third-party
An outsider a business or personal invitee or a party with absolutely no connection to an insured who may become a claimant under a form of public liability coverage because of injury or property damage alleged to have been caused by the negligence of the insured.
Third-party administrator (TPA)
A firm that handles various types of administrative responsibilities, on a fee-for-services basis, for organizations involved in cash flow programs. These responsibilities typically include claims administration, loss control, risk management information systems, and risk management consulting.
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MEDICAL: US: Independent organization or individual, other than the insurance company or health care provider, that processes and pays insurance claims to providers, provides administrative services for self-insured employer groups or managed care plans (e.g., collects insurance premiums, maintains records, handles routine underwriting but does not assume the risk). A TPA is recognized as a third party because it is separate from the employee participants and employer sponsoring the insurance plan. Also known as a clearinghouse .
Third-party application
Insurance application submitted by an individual other than the person being insured.
Third-party claims
Liability claims brought by persons allegedly injured or harmed by the insured. The insured is the first party, the insurer is the second party, and the claimant is the third party.
Third-party endorsement
System of marketing individual insurance to groups in which the insurance company formally agrees with an organization to sell individual insurance to members of the organization.
Third-party insurance
Insurance coverage bought by the insured (first party) from an insurance company (second party) for coverage to protect against lawsuits by another (third party).
Third-party liability
1. Third-party liability exists if an entity (not connected with the employer) is the cause and is liable to pay the medical cost for injury, disease, or disability of a person hurt during the performance of his or her occupation and the injury is caused by an entity not connected with the employer. 2. Entity that is responsible for the cost of an illness or injury (e.g., automobile, homeowner insurer). Also referred to as third-party payer liable .
Third-party liability coverage
In general, any type of insurance covering the legal liability of one party to another party. For example, commercial general, business auto, and errors and omissions (E&O) liability policies all provide third-party liability coverage. In the context of employment practices liability (EPL) insurance, a so-called third-party liability coverage option is sometimes available to address claims made by nonemployees (e.g., customers, vendors, clients) against the insured company that arise from acts committed by employees. Most often, third-party claims allege some form of either discrimination or harassment. The majority of EPL policies do not explicitly cover third-party claims, although most insurers will provide such coverage by endorsement.