meaning of buyout settlement clause

buyout settlement clause meaning in Insurance Dictionary

a supply present media liability plans permitting an insured the option to refuse settlement of a claim for a quantity made available from an insurer and decided by a claimant. The clause enables the insurer to tender that total the insured, therefore "purchasing completely" for the claim. When this occurs, the insured takes total control over the case, bearing the chance that ultimate settlement and protection expenses will meet or exceed the buyout figure. If the situation is fixed for under that quantity, the guaranteed may maintain the huge difference.