By Eli Goins · FL DFS #P159790 · Reviewed: · 1 min read
Short answer: If you sign a carrier release without reviewing it, you accept the settlement as full and final and waive future claims from the same loss, including supplemental, reopened, and bad-faith claims, often permanently. Do not cash the settlement check until a licensed public adjuster or attorney reviews the release language first.
What a release does
- Accepts the settlement amount as full and final
- Waives future claims arising from the same loss
- Often waives bad-faith exposure
- Typically cannot be undone
When you see one
- Final settlement check arrives with a release to sign
- Closing letter references a release requirement
- Check memo line contains "full and final"
What to do instead
- Don't cash the check until the release is reviewed
- Read the release language carefully: particularly scope of release and reopen rights
- Have a licensed PA or attorney review before signing
- Negotiate narrower language if possible