Short Answer

If you miss the insurer’s return deadline, the settlement can be delayed, and the insurer may withdraw or require a new approval before issuing payment. In North Carolina, an insurer usually will not mail the check until it receives the original, signed, notarized release. Deadlines in the insurer’s letter control, but extensions are often possible if requested promptly and confirmed in writing.

Understanding the Problem

In North Carolina, you (the injured person) must sign and notarize the insurer’s release and return the original by the date the insurer set so the insurer will issue the settlement check. You want to know what happens if you do not get that notarized release back in time, especially because the release and check are moving by postal mail.

Apply the Law

Under North Carolina law, a settlement is a contract. Insurers commonly make timely return of a signed, notarized release a condition to payment. If the deadline passes, the offer can lapse, payment can be paused, or the insurer can require updated approval or a new release. No single statute sets a universal deadline for returning a release, but other North Carolina rules can affect timing and paperwork (for example, protecting medical liens or coordinating uninsured/underinsured motorist issues). The process is handled between your attorney and the insurer; if a lawsuit is filed, any enforcement or approvals run through the trial court.

Key Requirements

• Timely return of the release: Send the original, signed, notarized release by the date printed in the insurer’s letter.
• Original (wet-ink) signature: Most insurers require the original notarized document before issuing the check.
• Condition to payment: The insurer’s duty to mail the check normally starts only after it receives the executed release.
• Lien protection: Medical liens and similar claims must be protected and typically addressed before disbursement.
• UM/UIM coordination when applicable: If uninsured/underinsured motorist coverage is involved, additional consent or notice steps can affect timing.

What the Statutes Say

• North Carolina Gen. Stat. § 44-49 (Health care provider claims on personal injury funds) - gives providers a claim against settlement proceeds that must be protected.
• North Carolina Gen. Stat. § 44-50 (Enforcement and limits of provider claims) - addresses how providers’ claims are paid from settlements.
• North Carolina Gen. Stat. § 20-279.21 (UM/UIM coverage) - contains procedures that can impact timing and consent when UM/UIM coverage applies.

Analysis

Apply the Rule to the Facts: Here, the insurer will issue a hard-copy check only after it receives your original, notarized release. If you miss the return deadline, the insurer can pause payment, require a new release date, or re-approve the payout, causing delay. Because all documents move by email and postal mail, mailing time is a practical risk—build in days for delivery and consider trackable mail to meet the insurer’s date.

Process & Timing

1. Who files: You sign and notarize the insurer’s release. Where: Mail the original to your attorney (who forwards to the insurer) as instructed in the settlement letter. What: The insurer’s specific release form (original notarized). When: By the expiration date printed in the insurer’s letter (mail early to allow delivery).
2. Your attorney confirms receipt, sends the original to the insurer, and requests check issuance. Processing time varies by insurer; expect additional days for mailing the check.
3. After the check arrives, your attorney deposits it, resolves and pays any protected liens/claims, and disburses the net funds to you with a settlement statement.

Exceptions & Pitfalls

• If UM/UIM coverage is involved, do not sign a release that affects those rights without addressing any required notice or consent first.
• Original notary required: e-signatures or scans may not suffice; confirm the insurer’s requirements.
• Mail delays: Use trackable, expedited mail when you are close to the deadline; request a written extension if needed.
• Liens and claims: Unresolved medical or benefit liens can delay disbursement even after the check arrives.
• Minors or incompetent adults: Court approval may be required before a release is effective, which extends timing.

Talk to a Accident Q&A Series Attorney

If you're dealing with a missed release deadline or timing issues on a North Carolina injury settlement, our firm has experienced attorneys who can help you understand your options and timelines. 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.