What is the claim settlement process?

The claim settlement process in California is the process of a claimant (typically an insurance policyholder) making a request to their insurance provider in order to receive payment. Typically, this process begins when a policyholder sends a written notice and all necessary proofs-of-loss (documents that verify and support the claim) to their insurance company. The insurance company then investigates the claim and determines what to do in response. If they are willing to pay part or all of the claim, they will send a “Proof of Loss” form, which specifies the amount of payment that is to be made, to the claimant. The claimant must then sign and return the form, along with copies of the original proofs-of-loss, to the insurance company. The insurance company then sends a check or sends payment electronically to the claimant. This payment is referred to as a claim settlement. Once the claimant has received the check or payment, he or she must sign a release or waiver form, confirming that the claimant has received the compensation and stating that the insurance company is released from further responsibility in the case. If the claimant and the insurance company are unable to agree on a settlement, they may have to pursue mediation, arbitration, or even litigation in order to resolve the dispute.

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What is the claim settlement process?

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