What is a key feature of Advance Payment Settlements?

• A. They require full settlement before payment
• B. They are only for property claims
• C. They provide early financial relief to claimants
• D. They are only applicable to business insurance

Answer: (C)

Advance Payment Settlements are designed to provide early financial relief to claimants following a loss. This is particularly important in situations where individuals or businesses have incurred immediate expenses due to the loss, such as medical bills or property damage repairs, and are facing financial hardship while waiting for the final settlement of their claim. By allowing for partial payments in advance, these settlements help alleviate some of the financial pressure and can support claimants in managing their immediate needs while the claim process is ongoing.

The focus on providing immediate assistance makes this feature crucial for both individuals and businesses that require swift financial support after a loss. This aspect of Advance Payment Settlements is what distinguishes them from other settlement types, highlighting their purpose of facilitating timely relief rather than just fulfilling contractual obstructions or conditions.