When an insurer agrees to pay a sum of money to a third party in exchange for the third party giving up his or her legal right to pursue litigation against the insured,this is called a(n)________.

Question

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Settlements involve the payment of an agreed upon sum of money to the third party in exchange for the third party giving up his or her legal right to pursue litigation against the insured.

When an Insurer Agrees to Pay a Sum of Money