Settlement Agreement

A Settlement Agreement is a legal contract between a policyholder and an insurer, resolving an insurance claim or lawsuit in exchange for a specified payment or other consideration. The agreement typically sets forth the terms of the settlement, including the amount of the payment, the scope of the release, and any conditions or obligations of the parties. The purpose of a settlement agreement is to provide a final and binding resolution of the claim or dispute, and to avoid the time, expense, and uncertainty of further litigation. Settlement agreements may be negotiated informally between the parties or through mediation or other alternative dispute resolution processes.