Definition Of Structured Settlement In Insurance

Definition of "Structured settlement"

Melanie Chadwell Norris, Real Estate Agent RE/MAX ALL PROS - Tampa/Valrico

Periodic payments to an injured person or survivor for a determinable number of years or for life typically in settlement of a claim under a liability policy. Terms may include immediate reimbursement for medical and legal expenses and rehabilitation, and long-term payments for loss of income or as compensation for other injuries. A structured settlement can be expected to be less costly to the insurance carrier than a lump sum settlement, especially if it enables costly litigation to be avoided.