1. Business & Finance
Settlement
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 Related Terms
• Actual Cash Value
• Claim
• Limits
 
 
Definition: The amount the insurance company pays to the party that was injured by a covered loss. The payment amount can be in other forms besides money such as replacements.

Examples: When Micky's home theater system was ruined in his small house fire his insurance company paid a settlement to Micky by replacing the system with a comparable model.

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