Why would a claimant need to sign a release after a claim is paid?

A claimant is required to sign a release after a claim is paid to officially acknowledge the settlement. This release serves as a formal document that indicates the claimant has accepted the terms of the settlement and that no further claims can be made regarding the same issue. Essentially, it helps to protect the insurer by ensuring that the claimant cannot come back later demanding additional compensation for the same incident. By signing this release, the claimant confirms that they understand and agree to the resolution offered, which often includes payment for damages or losses incurred. This step is crucial in the claims process, as it helps to finalize the agreement and prevents ongoing legal disputes related to the matter.