Purpose
A closing letter formally notifies the insured or claimant that the claim has been resolved and the file is being closed. It serves as a final record of the outcome and preserves the carrier's documentation trail.
When to Send
The closing letter is sent after all payments have been issued, all disputes have been resolved (or the appeal period has expired), and the carrier considers the claim fully handled.
Required Components
Resolution Summary
State how the claim was resolved: paid in full, paid in part, denied, withdrawn by the insured, or settled by agreement.
Payment Summary
If payments were made, summarize the total amount paid, the coverages under which payment was made, and any remaining recoverable depreciation (for property claims with replacement cost coverage).
Remaining Rights
If the insured has remaining rights (e.g., recoverable depreciation, supplemental claims for undiscovered damage), explain those rights clearly, including any deadlines.
Reopening Instructions
Explain whether and how the insured can request the claim be reopened if new information emerges or additional damage is discovered.
Contact Information
Provide a point of contact for post-closing questions.
Adjuster Guidance
- Confirm all payments have cleared before sending the closing letter
- Include a complete payment history or summary
- For property claims, explicitly address recoverable depreciation deadlines
- Do not close a claim prematurely if the insured has indicated an intent to supplement
- Retain proof of delivery of the closing letter in the claim file