Which term describes a situation involving a person who is not an insured party?

The term that describes a situation involving a person who is not an insured party is "Third Party Loss." This concept typically arises in insurance contexts where an individual or entity (the third party) is involved in a claim but does not hold the insurance policy.

In insurance transactions, a third party may suffer damages or losses due to the actions of the insured party. For instance, if a driver causes an accident that injures another individual, that injured person is a third party in relation to the insurance claim filed by the driver. The driver (insured) may claim coverage for any damages they are liable for towards the third party.

Understanding this term is essential because it highlights the relationship between different parties in an insurance situation and how liabilities are assigned. Third-party losses often play a critical role in liability insurance, helping to clarify situations where the insured's responsibilities extend beyond just their own interests.

In contrast, the other terms refer to different aspects of insurance claims. A claim typically refers to a formal request for payment or compensation under an insurance policy, while co-insured losses pertain to situations where multiple parties have insurance coverage for the same risk. Subrogation involves the insurer's right to pursue recovery from a third party responsible for a loss after they