Which of the following is essential for determining third party claims?

Determining third-party claims fundamentally revolves around the concept of legal liability. For a third-party claim to be considered valid, it is crucial to establish whether the insured party is legally responsible for the damages or injuries claimed by the third party. This assessment of liability serves as the foundation for justifying the claim's validity and proceeding with compensation. If the insured is not legally liable, the claim cannot be upheld, regardless of the other factors involved, such as the amount of the claim or the validity of the policy term.

In contrast, while understanding the claim amount relative to policy limits is important for insurance payouts and may affect the resolution of a claim, it does not directly address whether the insured is responsible for the incident in question. The involvement of a recognized insurance agent can be helpful in claims processing but is not a criteria for determining whether the third-party claim itself is valid. Lastly, the validity of the policy term, while it ensures coverage is in effect during the incident, does not establish whether the insured's actions result in liability toward the third party. These considerations are secondary to the initial requirement of confirming legal liability.