Final answer:
The statement that settlement options are available on all insurance contracts is false. Settlement options vary by policy and insurer, with some insurance contracts providing multiple options and others providing limited or no choices.
Step-by-step explanation:
The statement "Settlement options are available on all insurance contracts" is false. Settlement options, which dictate how the benefits of an insurance policy will be paid out to beneficiaries after a claim is made, vary depending on the policy and the insurance company offering it. Some insurance contracts may offer a variety of settlement options, while others may have limited or no choices.
For example, life insurance policies often provide several settlement options, such as lump-sum payments, annuities, or installment plans. However, certain types of insurance like property insurance typically do not offer such flexibility and typically pay out claims in one sum once the claim is approved and processed. Therefore, it's essential for policyholders to review their insurance contracts to understand the specific settlement options available to them.