Buyout settlement clause

{
  "id": "MLC-T-INS-000655",
  "term": "Buyout settlement clause",
  "field": "Insurance and risk management",
  "definition": "A provision in an insurance policy or settlement agreement that allows one party to pay a lump sum to the other party to terminate future obligations or claims. This clause is often used in long-term disability or workers' compensation cases to finalize a claim and provide the claimant with immediate funds. It eliminates ongoing administrative costs and future uncertainty for the insurer.",
  "url": "https://mlchart.com/terminology/insurance/buyout-settlement-clause/"
}