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.
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