No, insurance companies settle claims all the time. They have whole departments that work with their in-house attorneys, and all they do is settle cases out. This is how they get to settle claims all day long. They will settle claims, and you are expected to settle back with them. It is otherwise called a negotiation. You will tell the insurance company how much you want, they will consider your request, then the insurance company will make an offer. At that point, you will either accept the offer or not.
If you do not accept the offer, and make a counter figure as your settlement request, then negotiations to settle will be in full swing. Finally, once a settlement package is accepted on both ends, the settlement will have ended. You will sign paperwork stating that it is a full and final settlement, never to be brought up again, and you will in a few days to weeks receive your settlement check paid in full.