There are a few different ways that an insurance company can pay out a claim. The most common way is for the insurance company to reimburse the policyholder for any expenses that were incurred. This could include things like medical bills, property damage, or even lost wages. Another way that claims can be paid out is through what's called a lump sum payment. This is where the insurance company pays out a set amount of money to the policyholder, and it's up to them to use that money however they see fit. Finally, some insurance companies will offer what's called a structured settlement. This is where the insurance company agrees to make periodic payments to the policyholder over time, rather than one lump sum payment.