Who is considered the first party in a contract?

In an insurance contract, the first party is the insured, which is the individual or entity that purchases the insurance policy and is protected by it. This party is critical to the contract because they are the ones who seek coverage for their risks and, in return, agree to pay the premiums stipulated by the insurance company. The insured provides vital information during the underwriting process and is the primary subject of the insurance agreement.

While the insurance company also plays a significant role as the second party in the contract—providing the coverage and assuming the risk—the first party is distinctly the person or entity seeking protection. The beneficiary, who is often a third party, receives benefits from the policy but does not enter into the contract with the insurance company. The underwriter, on the other hand, is responsible for evaluating risks and determining the terms of coverage but is not a party to the contract itself. Understanding the roles of these entities clarifies the structure of insurance contracts and the responsibilities each party holds.