Definition - What does Settlement mean?
A settlement, in the context of insurance, refers to a policy benefit or claims payment. The amount depends on the particular claim, the guidelines stipulated in the insurance policy, and the mutual agreement of the parties involved.
Insuranceopedia explains Settlement
For example, a policyholder gets into a car accident and is not at fault. They file a claim, and once the insurer processes and confirms the details, there would be a settlement to pay for repairs and medical expenses within the appropriate coverage limits of the policy. To ensure the insurer accepts a claim, it is important for the policyholder to be aware of their rights, the policy details, and have supporting evidence.