What is a 'release' in the context of settling a claim?

A release is a legal document the claimant signs when a claim is settled, in which they agree to relinquish (release) any further claims against the insurer and/or the responsible party arising from that loss, in exchange for the agreed settlement payment. Once signed, a valid release generally bars the claimant from later seeking additional money for the same loss. Adjusters obtain appropriate releases to finalize settlements and provide closure. Releases must be properly drafted and the settlement fair. Understanding the function of a release — closing out a claim in exchange for payment — is standard negotiation-and-settlement content for the adjuster exam.