In a third-party claim example, what action does the manufacturer take regarding Polly's Plastics?

• A. The manufacturer sues Polly's Plastics for damages
• B. The employee sues Polly's Plastics for negligence
• C. The manufacturer seeks reimbursement or contribution from Polly's Plastics
• D. Polly's Plastics sues the employee for fraud

Answer: (C)

In a third-party claim, someone outside the insured party brings a claim for damages, and the insurer may end up paying on behalf of the insured. After paying, the next step often involves recovering those costs from the party at fault through subrogation or contribution. The action described — the party that paid seeking reimbursement or contribution from Polly's Plastics — fits this pattern, because it aims to shift part or all of the loss back to the responsible party. The other scenarios describe direct lawsuits that wouldn’t illustrate the recovery of paid claim costs from the at-fault party in a third-party context.