Claim Settlement Agreement

A Claim Settlement Agreement is a legal contract between an insurance company and a policyholder or claimant that resolves a disputed claim and releases the insurer from further liability. The agreement typically includes the terms of the settlement, such as the amount to be paid, the scope of the release, and any conditions or restrictions on the use of the funds. Claim settlement agreements are often used to avoid litigation and to provide certainty and finality to the claim process. They may be negotiated directly between the parties or with the assistance of attorneys or mediators, and are enforceable in court if either party breaches the terms of the agreement.