Short Answer

In North Carolina, once you sign and return the insurer’s release, payment should be made within a reasonable time. Many insurers issue checks within 1–3 weeks after receiving the completed release and any required forms. Your attorney must deposit the check into a trust account, wait for funds to clear, and resolve any known liens before paying you. Court approval (for minors or wrongful death) or lien negotiations can extend the timeline.

Understanding the Problem

You want to know how quickly you will receive your personal injury settlement after you sign and return the insurer’s release in North Carolina. You have counsel, the insurer has called its offer final, and you plan to sign the release it emailed. The timing turns on three pieces: the insurer issuing payment, your lawyer clearing funds in a trust account, and resolving any required liens or approvals.

Apply the Law

Under North Carolina law, insurers must handle settled claims promptly and pay within a reasonable time after they receive your signed release and any required documents. Payment usually comes by check made payable to you and your attorney. Your attorney must deposit the funds into a trust account, disburse only after the money is collected, and address statutory and contractual liens (for example, medical provider or government liens) before releasing your share. If a court must approve the settlement (such as for a minor or in wrongful death), payment generally cannot be made until after the approval order.

Key Requirements

• Agreed settlement: You and the insurer have a clear agreement on the amount and terms.
• Signed release delivered: You return the executed release and any required forms (often a W-9) to the insurer.
• Insurer issues payment: The insurer processes and mails or delivers the check within a reasonable time.
• Trust account deposit and clearance: Your lawyer deposits the check and waits until the funds are collected before any disbursement.
• Lien/claim resolution: Known medical liens or reimbursement claims are verified and paid or negotiated as required by law.
• Court approval when required: If approval is necessary (e.g., minor or wrongful death), funds are not disbursed until the court signs the order.

What the Statutes Say

• North Carolina Gen. Stat. § 58-63-15(11) (Unfair claim settlement practices) - Insurers must act promptly and fairly in settling claims; unreasonable delays can violate the statute.
• Rule 1.15, North Carolina Rules of Professional Conduct (Safekeeping Property) - Lawyers must hold settlement funds in trust and disburse only after the funds are collected, with proper accounting and lien resolution.

Analysis

Apply the Rule to the Facts: Here, you have an agreed settlement and will sign the insurer’s release. After the insurer receives the completed release (and any requested W-9), it should issue payment within a reasonable time. Your lawyer will deposit the check, wait for the bank to clear it, and address any known medical or reimbursement claims before disbursing your share. If no court approval or complex liens are involved, this often occurs within a few weeks.

Process & Timing

1. Who files: You (through your attorney) send the executed release. Where: The insurer’s claims department in North Carolina (or as directed in the release). What: Signed release and any requested forms (commonly a W‑9). When: Send promptly; ask for written confirmation of receipt.
2. Insurer payment: Many carriers issue checks within 7–14 business days after receiving the completed release; mailing can add several days. Ask whether the insurer can overnight or use electronic payment if available.
3. Trust deposit and disbursement: Your lawyer deposits the check in the trust account, typically waits 3–5 business days for clearance, resolves liens/reimbursements, and provides a settlement statement. You then receive your funds by check or electronic transfer.

Exceptions & Pitfalls

• Missing documents: Delays occur if the insurer needs a W‑9, original signatures, or separate releases (e.g., property damage vs. injury).
• Unexpected release terms: Added confidentiality or broad indemnity language can slow things down; clarify terms before signing.
• Court approval: Minor or wrongful death settlements generally need court approval before payment and disbursement.
• Medicare/Medicaid/TRICARE liens: Government lien resolution can add weeks; final demands are often required before disbursement.
• Provider and health plan claims: Medical providers or health plans may assert lien or reimbursement rights that must be addressed before paying you.
• Funds not yet collected: Your lawyer cannot disburse until the bank confirms collected funds in the trust account.

Talk to a Personal Injury Attorney

If you’re finalizing a settlement and want a clear timeline for payment and disbursement, our firm has attorneys who can help you understand your options and next steps. Reach out today. Call (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.