Insurance coverage bought by the insured (first party) from an insurance company (second party) for coverage to protect against lawsuits by another (third party).
Insurance Encyclopedia
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.
Third-party payer
Private insurance company or government fiscal intermediary (third party) that insures and/or pays provider (second party) for health care benefits of members or beneficiaries (first parties) (e.g., Blue Cross, Medicare, Medicaid, commercial insurance companies). Also known as indirect payer, insurance company, insurer , or payer .
third-party payer liable (TPL)
Private insurance company or government fiscal intermediary (third party) legally responsible under a contract to pay providers who rendered health care benefits to its members or beneficiaries.
Third-party payment
Reimbursement sent to the provider (second party) of health care services by an insurance carrier or government program (third party) on behalf of the patient (first party). Also called third-party reimbursement (TPR) .
third-party reimbursement (TPR)
See: third-party payment .
Third-party subrogation
The legal process by which an insurance company seeks from a third party, who has caused a loss, recovery of the amount paid to the policyholder.
Third-party use
Situation in which a third party from another organization is given permission to use data originally obtained from the Centers for Medicare and Medicaid Services (CMS) by the original requestor.
Three Trades Rule
Theory that when three trades are likely to be required to repair the damaged property, a general contractor is presumed to be required to coordinate, supervise, and oversee the repairs and, therefore, a 20 percent contractor’s overhead and profit payment should be included in the ACV settlement.