What characterizes a No Release Settlement?

A No Release Settlement is characterized by the fact that although the insurer pays the claims, the claimant does not sign a release form. This means the claimant retains the right to pursue additional claims or recoveries related to the same incident or injury in the future.

In this settlement type, since a release form is not executed, the claimant is not waiving their right to pursue further legal action or claims against the insurer. This distinguishes it significantly from other settlement types, where signing a release generally means relinquishing the right to seek additional compensation for the same issue.

The other choices do not accurately describe a No Release Settlement. For instance, an upfront payment characterizes a different type of settlement where the claimant is paid in full for all claims and typically must sign a release form, thereby waiving any future claims. Similarly, a long-term payment structure does not apply here, as it does not capture the essence of a settlement where no release is signed. Finally, while it might seem intuitive that an insurer paying bills could relate to this type of settlement, the key point of a No Release Settlement is the absence of a signed release, which allows for ongoing liability.