Insurance 101 – Chapter 8 – Volume 98 – The Release of All Claims

The Release of All Claims

A first party property insurer may not require a general release from an insured when paying a claim because the payment is one of contractual indemnity where the amount is certain. At most, the insurer is entitled to a proof of loss or a receipt acknowledging receipt of payment. The only reason for a general release between a first party property insurer and its insured, is when the amount of loss is in dispute and a compromise is entered into between the insured and the insurer. When there is such a dispute additional consideration is paid the insured for the signed release that protects the insurer from litigation and allows it to buy its peace.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

 

Legal Disclaimer

The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.

 

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *