Short Answer

Usually, once you and the insurance company have a clear agreement on a final settlement amount, the insurer should not be able to unilaterally change it under North Carolina law. In real life, disputes happen when the “agreement” was not complete (for example, it depended on a release, lien language, or other terms that were never finalized). If the insurer tries to change the number, your options typically include insisting on the original agreement in writing, refusing to sign a changed release, and—if needed—pursuing a lawsuit to enforce the settlement or continuing the underlying injury claim.

Understanding the Problem

In North Carolina, can an insurance company backtrack after an adjuster and your attorney agree on a final settlement amount for your injury claim, especially when the insurer previously offered less and your attorney countered higher?

Apply the Law

In North Carolina, a personal injury settlement is generally treated like a contract: if both sides reached a clear “meeting of the minds” on the essential terms (most importantly, the amount to be paid and what claims are being released), the insurer typically cannot change the amount on its own after acceptance. Problems arise when the parties agreed on a number but did not actually agree on key settlement terms (often contained in the release), or when the insurer claims the adjuster lacked authority, made a mistake, or conditioned the deal on later approval. The usual forum for enforcing a disputed settlement is the North Carolina state trial court (Superior Court or District Court, depending on the case) where the injury case is pending or would be filed.

Key Requirements

• Clear agreement on the amount: The final dollar figure must be definite, not “subject to review” or “pending approval,” unless that condition was part of the deal.
• Agreement on what is being released: Settlement usually requires a signed release; if the release terms materially change what you give up, the insurer may argue there was no final agreement yet.
• Authority to settle: The person accepting (often the adjuster) must have authority from the insurer to bind the company, or the insurer may try to dispute the deal.
• No material new conditions: If the insurer adds new requirements after the fact (new release language, new payee terms, new “setoffs”), that can be a sign they are trying to renegotiate rather than perform.
• Proper documentation: Written confirmation (email/letter) that the offer was accepted helps prove the terms and timing of the agreement.
• Execution and delivery steps: Many settlements are “number agreed, then release signed, then check issued.” Disputes often happen in the release/check stage.

What the Statutes Say

• N.C. Gen. Stat. § 75-1.1 (Unfair or deceptive acts or practices) - Declares unfair or deceptive acts in commerce unlawful; in some situations, claim-handling conduct can support this type of claim.
• N.C. Gen. Stat. § 1-540.2 (Motor vehicle property damage settlements) - Explains that settling property damage from a crash does not automatically release bodily injury claims unless the written settlement terms clearly say so.

Analysis

Apply the Rule to the Facts: Here, the adjuster and the law firm negotiated back and forth and reached agreement on a final settlement amount, with the insurer planning to send a settlement letter and release and then issue the check. That pattern often indicates the “number” is agreed, but the insurer may still try to use the release stage to change terms or effectively reduce the value (for example, by adding new conditions). If the insurer tries to change the amount after the agreement, the key question becomes whether the parties already had a complete agreement on the essential terms, or whether the insurer can credibly claim the deal was still conditional.

Process & Timing

1. Who files: The injured claimant (usually through counsel). Where: The appropriate North Carolina trial court (often the county where the crash happened or where the defendant resides, depending on the case). What: Commonly a motion asking the court to enforce the settlement agreement (if a lawsuit is already pending), or a lawsuit for breach of the settlement agreement (if no case is pending). When: As soon as it becomes clear the insurer will not honor the agreed amount or is conditioning payment on new terms.
2. Build the paper trail: Confirm the settlement amount and key terms in writing (email/letter). If the insurer sends a revised release or a letter with a different number, respond promptly and clearly that you do not accept the change and that you are ready to complete the settlement on the originally agreed terms.
3. Decision point: If the insurer refuses to perform, your options are typically (a) seek enforcement of the settlement, or (b) treat the settlement as not completed and continue pursuing the underlying injury claim (including filing suit if needed).

Exceptions & Pitfalls

• “We agreed on the number, but not the release” disputes: If the insurer’s release includes new, material terms (for example, broader parties released or unexpected conditions), the insurer may argue there was no final deal. Do not sign a release you do not understand.
• Conditional acceptance: If the acceptance was “we accept if you also do X,” that may be a counteroffer, not an acceptance. Clear, unconditional acceptance matters.
• Authority issues: Insurers sometimes claim the adjuster lacked authority. Written confirmation from the insurer side helps reduce this risk.
• Check/payee problems: Disputes can arise over who the check is made payable to (client, law firm trust account, lienholders). Sorting this out early can prevent delays and “re-trades.”
• Property damage vs. injury confusion: In a car crash, settling property damage does not automatically settle injury claims unless the written settlement terms clearly say so. Read what you are signing carefully.

Conclusion

In North Carolina, an insurer generally should not be able to change a personal injury settlement amount after a clear agreement is reached, but disputes can arise if key terms (often in the release) were not actually finalized or the insurer claims the deal was conditional. If the insurer tries to lower or change the settlement after agreement, the practical next step is to put the agreed amount and terms in writing and demand performance—then consider filing a motion to enforce the settlement in the appropriate North Carolina trial court if they still refuse.

Talk to a Personal Injury Attorney

If you’re dealing with an insurer that is trying to change the settlement amount after an agreement, our firm has experienced attorneys who can help you document the agreement, spot problematic release language, and understand your options and timelines. Reach out today. Call

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.