What is the primary feature of a Full Release Settlement?

In a Full Release Settlement, the primary feature is that the insurer pays all damages at once. This type of settlement involves the insured receiving a lump sum payment that covers all covered damages related to the claim. By accepting this settlement, the claimant typically agrees to release the insurer from any further liability concerning the claim. This effectively means that once the payment is made, the claimant cannot pursue additional claims related to the same issue in the future.

The key characteristic of this arrangement is the finality it provides to both parties. The insurer satisfies their obligation by making the full payment, and in return, they are released from any future claims or disputes regarding that incident. This simplifies the resolution process and ensures that both the insurer and the claimant can move on from the claim without lingering concerns.

Other options represent different aspects of potential settlements but do not capture the essence of a Full Release Settlement. For instance, installment payments (the first choice) imply an ongoing obligation, which contradicts the full and final nature of a full release. Retaining the right to future claims (the third choice) is contrary to the very principle behind a full release. The fourth choice, payments being limited to property damage, also does not align with the comprehensive compensation aspect of a Full