removing bricked iPhone off "find my phone" - important?

[Tiggsy]

Wife has a bricked iPhone (did not like the Red Sea) - her insurance is happy to pay out with a new phone but won't proceed till she has confirmed it is removed from her Find my iPhone service. She can't do this as she has lost her Apple ID password and has a 4 day wait to get that issue fixed.

Can she just tell the insurance people she's done it - so they send out a new phone ASAP and it is here when her ID issue is sorted or does it have to be done before they go ahead? I can't see why they would care at their end and she can get it off her account any time.

Otherwise - she waits 4 days for the ID issue then is trying to get a phone sent out in the xmas post and it all drags out.