Florida Insurance Licensing Practice Exam

A claimant was given a settlement, which stipulated, that if the claimant did not contact the company within a certain period of time, the claim would automatically close. No release was signed. Which of the following best describes this method of settlement?

1. Full release

2. No release or walk-away

3. Advanced payment

4. Scheduled payment

The correct answer is: No release or walk-away

This method of settlement can be described as a "no release" or "walk-away" option. This is because the claimant does not need to sign a release in order to receive the settlement, but they are also not required to contact the company within a certain time frame or take any further actions. The other options are incorrect because a full release would require the claimant to sign a legal document releasing the company from any future claims related to the settlement, an advanced payment would imply that the claimant has received at least part of the settlement amount upfront, and a scheduled payment would mean that the settlement would be paid out over a period of time instead of all at once. None of these options accurately describe the situation where no release or further action is required by the claimant to receive the settlement.