Florida Insurance Licensing Practice Exam

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Prepare for the Florida Insurance Licensing Exam using comprehensive questions and in-depth explanations. Perfect your understanding of essential insurance concepts and ensure your success!

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What is a settlement called where the full payment is presented and a release is signed?

Walk-away settlement
Full Release settlement
Rehabilitation settlement
Structured settlement

The correct answer is: Full Release settlement

A Walk-away settlement is when a plaintiff agrees to dismiss the case in return for no payment or agreement by the defendant. A Rehabilitation settlement is when the defendant agrees to pay for the plaintiff's medical or rehabilitation expenses. A Structured settlement is when the defendant agrees to pay the plaintiff in scheduled payments rather than a lump sum. A Full Release settlement is the answer because it is the only option that mentions both a full payment and a release being signed. This means that the plaintiff has received full compensation and is releasing the defendant from any further liability. The other options do not fully capture all aspects of this type of settlement.