Often confused with a settlement agreement, a release of claims is narrower and more final. A settlement agreement is the overall deal: who pays, how much, when payment is due, and any other conditions. A release of claims is the document that gives up the injured person's right to pursue the covered claims after payment. In practice, the settlement creates the obligation to pay; the release ends the legal right to ask for more money for those same losses.

A release can be broad or limited. A broad release may cover all known and unknown claims arising from the incident, including future medical complications. A limited release may apply only to one party, one insurer, or one category of damages, such as property damage but not bodily injury. The exact wording controls. Once signed, the claim is usually over unless the release was obtained by fraud, duress, or another recognized contract defense.

In an injury claim, the release is the point where leverage ends. After a crash in Arkansas, including one caused by low visibility in river-valley fog and investigated by the Arkansas State Police, an insurer will usually require a signed release before issuing payment. Because Arkansas is an at-fault insurance state, and the minimum liability limits under Ark. Code Ann. § 27-22-104 (2024) are 25/50/25, signing a release for policy-limits money can prevent any later demand against that insurer for the same claim, even if treatment becomes more expensive than expected.