What type of settlement involves the insurer paying the entire agreed amount at once?

A Full Release Settlement involves the insurer paying the entire agreed amount at once. This type of settlement is characterized by the resolution of all claims, where the insured receives a lump sum payment that fully satisfies their claim against the insurer. Upon receiving this payment, the insured typically agrees to release the insurer from any further liability related to that claim, which is why it is referred to as a "full release."

This settlement method provides a clear and final resolution for both parties, allowing the insurer to close the claim without ongoing obligations, while the insured receives immediate compensation for their losses. It is an effective way to settle disputes without lingering issues or potential future claims regarding the same incident.

In comparison, a Partial Payment Settlement would only cover a portion of the claim, leaving the insured potentially with unmet damages. A Split Settlement involves payments made at different times or in different amounts, and No Release Settlement does not require the insured to relinquish any rights against the insurer, which means ongoing liabilities may still exist. These characteristics clearly differentiate Full Release Settlement as the only option that entails a single, complete payment and resolution of the claim.