What Usually Must Happen Before Payment
- Settlement terms confirmed: The adjuster typically confirms the final settlement amount and what claims the release covers (for example, injury-only vs. “all claims”). If anything does not match what was agreed, your attorney may ask for a corrected release before sending it back.
- Documents signed: The insurer usually needs a properly signed release (and sometimes additional paperwork) before it will cut the check. If the release requires witnesses, notarization, or specific signature formatting, missing items can trigger a re-do.
- Liens/reimbursements addressed: Even after a release is signed, your attorney generally has to identify and resolve any valid third-party claims to the settlement funds. In North Carolina, medical providers may assert a lien on settlement proceeds in certain situations, and other reimbursement claims can also come up depending on how treatment was paid.
- Disbursement: When the settlement check arrives, it is typically deposited into a client trust account. After the check clears and the final numbers are confirmed, your attorney prepares a settlement statement showing the settlement amount, case costs (if any), attorney fee (if applicable), and what is being paid to others before the client receives the remainder.
What Can Cause Delays
- Release issues: Wrong date, wrong name formatting, missing signature fields, or release language that does not match the agreement.
- Scope of the release: Some releases are drafted broadly. If you still intend to pursue a separate, unresolved part of the claim (for example, certain property-related items), your attorney may need the release narrowed before you sign or before it is accepted.
- Liens and reimbursement claims: Your attorney may need time to confirm balances, negotiate where appropriate, and obtain written payoff/confirmation before distributing funds.
- Insurance processing: Insurers often have internal steps (review, approval, check request, mailing). Even when everything is signed, the check is not always issued the same day.
- Bank clearing time: Many firms wait until the settlement funds are actually available (not just “pending”) before writing disbursement checks.
Liens and Reimbursement Claims (Plain English)
A “lien” or “reimbursement claim” is a legal or contractual claim that says someone else may be entitled to be paid back from your settlement because they paid for accident-related care or expenses. In North Carolina injury cases, this can include certain medical provider liens and, in some cases, other payers that claim a right of recovery. Your attorney’s job at the end of the case is to identify which claims are valid, confirm the amounts, and handle the disbursement in a way that reduces the risk of problems later. This is one of the main reasons settlement checks commonly go to the attorney’s trust account first.
How This Applies
Apply to the facts: Because you electronically signed the release and the firm is sending it to the insurance company, the next typical step is the insurer’s internal review and then issuing the settlement check to your attorney. While you are waiting, the firm will usually be confirming whether any medical bills, provider liens, or other reimbursement claims need to be paid from the settlement and preparing the settlement statement. If the insurer asks for a corrected release or additional signatures, your attorney will usually contact you quickly to avoid unnecessary delay.
Conclusion
After your signed release is sent in, the insurer typically processes the paperwork and issues the settlement check to your attorney. Then your attorney deposits the funds, confirms any liens or reimbursement claims that must be handled, prepares a settlement statement, and disburses the remaining funds to you. If you want to help things move smoothly, the best next step is to respond quickly if your attorney asks for any additional signatures or information about how your treatment was paid.
