---
title: "Prepare the cash settlement offer and fact sheet for a general insurance claim"
url: "https://ailawframework.com/practice/insurance-law/prepare-the-cash-settlement-offer-and-fact-sheet-for-a-general-insurance"
type: "task"
site: "AI Law Framework"
id: "A22-T20261018-42"
practice_area: "Insurance Law"
tier: "green"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Prepare the cash settlement offer and fact sheet for a general insurance claim

> From the insurer's assessment, the repairer or builder quotes and the policy, fill the approved offer letter and Cash Settlement Fact Sheet templates with the total amount offered and its breakdown by component (such…

Canonical page: https://ailawframework.com/practice/insurance-law/prepare-the-cash-settlement-offer-and-fact-sheet-for-a-general-insurance  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Insurance Law](https://ailawframework.com/practice/insurance-law.md) |
| Human involvement | Green: AI drafts, lawyer checks |
| How AI is used | From the insurer's assessment, the repairer or builder quotes and the policy, fill the approved offer letter and Cash Settlement Fact Sheet templates with the total amount offered and its breakdown by component (such as sum insured, emergency payments and ex gratia payments), the other settlement options available, and the statement that the client should consider independent legal or financial advice. |
| What the lawyer must review | Approve the offer letter and fact sheet templates once at setup against ASIC's requirements, then confirm for each claim only that the client is a retail client, that repair or replacement is also legally available so the fact sheet is required, and that it is given at the time the offer is made. |
| Written for / versions | 1 jurisdiction versions below |

## Checking plan

**Lawyer review required**

The responsible lawyer reviews the work against the instructions, sources and intended use.

- What the AI does: From the insurer's assessment, the repairer or builder quotes and the policy, fill the approved offer letter and Cash Settlement Fact Sheet templates with the total amount offered and its breakdown by component (such as sum insured, emergency payments and ex gratia payments), the other settlement options available, and the statement that the client should consider independent legal or financial advice.
- What the lawyer does: Approve the offer letter and fact sheet templates once at setup against ASIC's requirements, then confirm for each claim only that the client is a retail client, that repair or replacement is also legally available so the fact sheet is required, and that it is given at the time the offer is made.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Practical workflow informed by the linked primary sources; the traffic light and working checks are editorial guidance, not a court classification.
- Why: The level reflects what the work is, the consequence of an error, and how much of the output the lawyer must independently re-derive.

## Checks the lawyer makes

1. Confirm the instructions, the jurisdiction and the complete relevant material before starting.
2. Confirm at setup that the templates carry the required title, the component breakdown and the advice statement.
3. Confirm the client is a retail client and that another legally available option, such as repair or replacement, exists.
4. Check the breakdown adds to the total offered and matches the insurer's assessment.
5. Check the output against the source documents named in it before it is relied on.

## Notes

- These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.

## Sources

- [ASIC INFO 253: Claims handling and settling (June 2025)](https://download.asic.gov.au/media/q2ybygwo/info253-published-16-june-2025.pdf) (checked 2026-10-18)

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/practice/insurance-law/prepare-the-cash-settlement-offer-and-fact-sheet-for-a-general-insurance/united-states.md) | Red |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*