Settlement

What Does Settlement Mean?

In insurance, a settlement refers to the payment of a policy benefit or claim. The amount is determined by the specifics of the claim, the terms outlined in the insurance policy, and the mutual agreement between the insurer and the insured.

Insuranceopedia Explains Settlement

For example, if a policyholder is involved in a car accident where they are not at fault, they can file a claim. After the insurer processes and verifies the details, a settlement is made to cover repairs and medical expenses, based on the coverage limits of the policy. To ensure the insurer accepts the claim, it is crucial for the policyholder to understand their rights, be familiar with the policy details, and provide supporting evidence.