Los Angeles Claims Adjuster Property and Causality Practice Exam

What is a claim's settlement that results in no attempt to obtain a release called?

1. No Release or Walk-Away

2. Full Release Settlement

3. Open-Ended Release

4. Advanced Payment

The correct answer is: No Release or Walk-Away

A claim's settlement that results in no attempt to obtain a release is referred to as "No Release or Walk-Away." This terminology indicates that the settlement has been made without requiring the claimant to sign a release of liability, which would typically prevent the claimant from pursuing further claims related to the incident. In scenarios where a walk-away settlement occurs, the insurance company may choose to resolve a claim but does not seek a formal release from the claimant. This can happen in situations where the insurer wants to expedite resolution, perhaps to maintain good customer relations or due to the assessment that the costs of potential further claims are manageable. Understanding this concept is crucial for claims adjusters. It helps them navigate various settlement options and assess the implications of not securing a release, which could potentially expose the insurer to future liabilities. In contrast, full release settlements, open-ended releases, and advanced payments all involve some form of waiver or agreement from the claimant regarding future claims, which is not the case in a "No Release or Walk-Away" settlement.