Los Angeles Claims Adjuster Property and Causality Practice Exam

Which of the following describes a no release or walk-away in insurance settlements?

1. A complete settlement without lien

2. Payment of bills without a release

3. A partial payment towards damages

4. A contingent payment based on future expenses

The correct answer is: Payment of bills without a release

The concept of a no release or walk-away in insurance settlements refers to a situation where an insured party receives payment for expenses, such as medical bills or property damages, without signing a release. This means that the insured party does not relinquish their rights to pursue further claims or damages related to the same incident. This is significant because it allows the claimant to acknowledge payment for immediate expenses while retaining the option to seek additional compensation if further damages arise. In this context, the other options do not accurately encapsulate the essence of a no release or walk-away scenario. A complete settlement without a lien implies that the claim has been fully resolved and no further claims can be pursued, which contradicts the idea of retaining rights. A partial payment towards damages suggests an incomplete resolution, which may not necessarily relate to the concept of a no release. A contingent payment based on future expenses indicates a payment arrangement that is dependent on future events, again not aligning with the definition of a no release situation, where the focus is on immediate expenses without forgoing future claims.