How is the term "claims settlement" best defined?

The term "claims settlement" is best defined as the process of evaluating, negotiating, and paying insurance claims. This definition encapsulates the multi-step nature of how insurance claims are handled once they are submitted by policyholders.

Initially, claims must be evaluated, which involves assessing the validity of the claim and determining the amount of loss or damage covered by the policy. This step ensures that the insurer accurately understands the circumstances surrounding the claim. Following evaluation, negotiation can occur, where the insurer and the claimant may discuss the findings and come to an agreement on the settlement amount. Finally, payment is made, finalizing the claims process and providing the claimant with the funds necessary to cover their loss or damages.

This comprehensive view of claims settlement is crucial for understanding how insurance policies function and how insurers maintain their responsibilities to policyholders. The other options, while related to aspects of claims processing, do not capture the entirety of what constitutes claims settlement. Filing claims online focuses solely on submission, loading claims onto a database pertains to data management rather than resolution, and conducting audits of closed claims relates to post-settlement review rather than the active process of settling claims.