Definition
A legal document you sign when accepting a settlement that permanently gives up your right to pursue any further claims against the at-fault party for this accident.
Real-World MVA Example
Before you receive your $60,000 settlement check, you must sign a release. Once signed, you can never come back for more money, even if your injuries worsen years later.
Related Terms in Settlement & Resolution
Arbitration
A private dispute resolution process where a neutral third party (arbitrator) hears both sides and makes a binding or non-binding decision, without going to court.
Demand Letter
A formal letter your attorney sends to the insurance company outlining your injuries, treatment, losses, and the amount of compensation you're demanding to settle.
Lump Sum Settlement
A single, one-time payment that resolves your entire claim. Once you accept it, you cannot come back for more money, even if your injuries get worse.
Mediation
A voluntary negotiation process where a neutral mediator helps you and the insurance company reach a settlement agreement. Unlike arbitration, the mediator doesn't make a decision.
Settlement
An agreement between you and the insurance company (or at-fault party) to resolve your claim for an agreed-upon amount of money, without going to trial.
Structured Settlement
A settlement paid out in periodic installments over time (monthly, annually) rather than as a single lump sum. Often used for large settlements involving long-term care needs.
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