Short Answer

Yes. In North Carolina, the liability claim against the at‑fault driver and the medical payments ("Med Pay") claim under your own auto policy are separate. You should use a liability release that only releases the at‑fault party and a separate Med Pay release or reimbursement/trust form for your own insurer. Keep the language narrow so you do not accidentally give up other rights, such as underinsured motorist (UIM) benefits.

Understanding the Problem

You are asking whether, in North Carolina personal injury cases, you must sign separate paperwork to settle the liability claim and to receive Med Pay benefits. You authorized counsel to accept a liability offer and also recovered Med Pay coverage. You must sign a notarized release for the main settlement, and your lawyer will confirm medical liens before distributing funds. You want to know if the Med Pay portion needs its own form.

Apply the Law

Under North Carolina law, a liability claim is a third‑party claim against the at‑fault driver’s insurer; Med Pay is first‑party, no‑fault coverage under your own policy. Because they are different claims and payors, insurers typically require separate documentation. Liability releases usually require a notarized signature and extinguish all claims against the released parties. Med Pay payments often require a distinct release or a reimbursement/trust agreement tied only to that coverage. Before funds are disbursed, valid medical liens must be addressed, and their total payout is capped by statute. If you have potential UIM benefits, you must give your UIM carrier notice and allow time for consent before signing a liability release.

Key Requirements

• Separate claims, separate papers: Use a liability release for the at‑fault party and a separate Med Pay form for your own insurer.
• Scope of release language: Each release should be limited to the specific coverage; do not let a Med Pay form waive injury claims or UM/UIM rights.
• UIM consent before releasing: If UIM may apply, give written notice to your UIM insurer and wait the consent/advance period before signing a liability release.
• Medical lien handling: Your lawyer must verify and pay valid provider liens from settlement funds, subject to a statutory cap.
• Execution and closing: Liability releases are commonly notarized; if a lawsuit was filed, the case is typically dismissed after funds clear.

What the Statutes Say

• North Carolina Gen. Stat. § 44-49 (Medical provider lien) - Gives medical providers a lien on personal injury recoveries for reasonable charges when proper notice is given.
• North Carolina Gen. Stat. § 44-50 (Payment and lien cap) - Requires attorneys to honor liens and limits combined lien payments to part of the recovery.
• North Carolina Gen. Stat. § 20-279.21 (UM/UIM coverage) - Sets procedures for UIM, including the insurer’s right to consent or advance funds before liability settlements.

Analysis

Apply the Rule to the Facts: Here, you should sign the notarized liability release for the at‑fault party’s insurer and a separate Med Pay document for your own insurer. Your lawyer will limit each form to its coverage so you do not waive UM/UIM rights. Before distributing funds, your lawyer will verify any provider liens and apply the statutory cap when dividing proceeds. You may also negotiate medical bills to reduce lien exposure.

Process & Timing

1. Who files: You (through your attorney). Where: With each insurer’s claims department; if a case is filed, with the Clerk of Superior Court for dismissal. What: Sign a liability release for the at‑fault party and a separate Med Pay release or reimbursement/trust form; provide lien information. When: Obtain UIM consent before signing the liability release if UIM may apply; address liens before disbursement.
2. Your attorney circulates final releases, confirms written UIM consent or advance if applicable, collects lien statements, and allocates funds using the lien cap. Timelines vary by insurer and county practice.
3. Funds are disbursed with a closing statement; if a lawsuit was pending, a voluntary dismissal is filed with the Clerk of Superior Court.

Exceptions & Pitfalls

• Do not sign a combined release that waives Med Pay, UM/UIM, or claims against non‑parties unless that is your informed intent.
• Failing to give your UIM insurer notice and time to consent before releasing the at‑fault driver can jeopardize UIM benefits.
• Medicare, Medicaid, ERISA, or state plan reimbursement claims may apply and must be addressed in addition to provider liens.
• If a minor or an incompetent adult is involved, court approval of the settlement may be required, and different procedures/forms apply.

Talk to a Personal Injury Attorney

If you're dealing with separate liability and Med Pay settlements and want to protect your rights and benefits, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [919-341-7055].

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.