What is the difference between a 'first-party' and 'third-party' claim from the adjuster's perspective?

The terminology comes from the parties to the insurance contract. First-party (1st party): the named insured (or someone insured under the policy); they make a claim against their own insurer. Examples: a homeowner whose house burned down filing under their own homeowners policy; a driver hit by an uninsured motorist filing under their own UM coverage; an insured filing a medical payments claim under their auto policy. The relationship is contractual — the insurer owes the insured the contractual obligations of the policy. Third-party (3rd party): a person outside the contract who has been injured or had property damaged, claiming against the insured; the insurer defends and pays on the insured's behalf under liability coverage. Examples: a person hit by the insured's car; a customer injured at the insured's business; a homeowner whose tree fell on the neighbor's car. The insurer's primary contractual obligation is to the insured, with an obligation to act in good faith toward the third party in settling claims. Different ethical and legal duties apply to each type; adjusters handle them differently. Bad-faith claims can arise in both contexts but with different theories. Public adjusters work first-party only.