What is necessary for a claim check issued in partial settlement of a claim?

For a claim check that is issued in partial settlement of a claim, it is necessary for the check to include a release of further liability. This release serves an essential purpose in the claims process. It essentially signifies that, by accepting the settlement amount, the claimant agrees to relinquish any further claims related to the specific issue that has been settled.

In this context, accepting the settlement check signifies that the claimant has accepted the offer to settle their claim for the amount specified. Including a release of liability protects the insurer from future claims that may arise from the same incident once the settlement is accepted. This legal release is crucial in ensuring that both parties have a clear understanding that the settlement concludes that particular dispute.

While a settlement agreement can accompany a claim check, it is not a strict requirement for the check itself to be considered valid. Similarly, verbal confirmations and full policy overviews are not necessary for the processing of a partial settlement check. These aspects can certainly aid in clarity and further understanding of the terms of settlement but do not fulfill the legal necessity for the release of further liability, which is primarily important in protecting the interests of the insurer after a settlement is made.