What Usually Must Happen Before Payment
- Settlement terms confirmed: The parties typically confirm the key terms in writing (what claims are being resolved and what paperwork is required) before any money is issued.
- Documents signed: The insurer commonly requires a release. Some insurers also request extra sworn statements—like an affidavit about health insurance—aimed at reducing later disputes about who must be paid from the settlement.
- Liens/reimbursements addressed: Even when you believe you had “no health insurance,” other reimbursement rights can still exist (for example, certain public benefits or medical provider liens). Sorting this out helps prevent the same medical bills from being paid twice or a payer seeking repayment later.
- Disbursement: Once the insurer has what it needs, it processes payment. How funds are distributed depends on the case posture (unrepresented vs. represented) and any reimbursement issues that apply.
What an “Affidavit of No Health Insurance” Usually Is (and Isn’t)
In plain English, an affidavit is a written statement you swear is true. “No health insurance” affidavits vary, but they often ask you to confirm things like:
- You did not have health insurance coverage on the date of the accident (or during a listed period), and/or
- No health insurer paid any of your accident-related medical bills, and/or
- You are not enrolled in certain government programs that could have reimbursement rights, and/or
- You will notify the insurer if you later learn a payer covered treatment related to the accident.
It is not a standard North Carolina “required form” in every injury claim. It is usually a risk-management document the insurer wants in its file.
Why the Insurance Company Wants You to Sign It
Insurers request these affidavits mainly to reduce the chance that someone else later claims part of the settlement. Common reasons include:
- Reimbursement/subrogation concerns: Some payers can seek repayment from an injury recovery in certain situations. Insurers want clarity about whether any payer might later assert a reimbursement claim.
- Medical provider liens: In North Carolina, medical providers may have lien rights against certain personal injury recoveries for treatment related to the injury. The insurer may be trying to confirm whether bills were handled through insurance or remain unpaid and potentially lien-eligible. (North Carolina’s medical lien statute is at N.C. Gen. Stat. § 44-49.)
- Public benefits issues: If Medicaid paid for accident-related care, North Carolina has statutory rights tied to recovery from third parties. Insurers often want to identify that early because it can affect how settlement funds are handled. (See N.C. Gen. Stat. § 108A-57.)
- Consistency and leverage: A sworn statement can be used to lock in your position. If later records show something different, the insurer may argue your credibility is in question or that the claim handling should change.
What Can Cause Delays
- Notary and ID issues: If the affidavit must be notarized, missing ID, missing pages, or incorrect notary wording can cause a rejection and re-signing.
- Overbroad language: Some affidavits go beyond “no health insurance” and ask for statements about all payers, all bills, or future obligations. Negotiating or correcting language can take time.
- Unclear payer history: Even if you had no health insurance, there may have been other payers (for example, a government program, a spouse’s plan, or later retroactive coverage). Sorting that out can slow things down.
- Outstanding medical bills: If bills remain unpaid, the insurer may worry about lien exposure and ask for more documentation before finalizing payment.
Liens and Reimbursement Claims (Plain English)
A “lien” or “reimbursement claim” is a demand that part of a settlement be used to repay medical costs someone else paid (or that you still owe). In North Carolina injury cases, these issues can come from different directions:
- Medical provider liens: North Carolina law can create lien rights for certain medical charges connected to the injury and the recovery. That is one reason insurers care whether bills were paid by insurance or remain outstanding. (See generally N.C. Gen. Stat. § 44-49.)
- Medicaid-related reimbursement: If Medicaid paid for injury-related care, state law provides subrogation/recovery rights and sets out procedures and presumptions that can affect repayment from a settlement. (See N.C. Gen. Stat. § 108A-57.)
- Other health plans: North Carolina has an “anti-subrogation” concept for many privately funded health insurance arrangements, but there are important exceptions (including some employer-funded plans and public plans). That is why insurers often want a clear, written payer picture instead of relying on assumptions.
Bottom line: the affidavit is often about who might claim part of the settlement later, not just whether you personally had an insurance card on the day of the accident.
How This Applies
Apply to the facts: Here, the insurer wants a notarized affidavit confirming no health insurance, and you plan to receive it by email, notarize it, and return it by fax. Before you do that, read it line-by-line to confirm it only covers what you truly know (for example, “no health insurance coverage” versus “no third-party payer paid anything,” which is broader). If any part is unclear or too broad, it may be safer to request a revised version rather than signing a sworn statement that could be challenged later.
Conclusion
An affidavit of no health insurance is a sworn statement insurers often use to confirm whether any payer could later seek repayment from a settlement. It can also be used to challenge your claim if it turns out to be inaccurate or overly broad. Your next step is to review the affidavit carefully and make sure every statement is true and limited to the correct time period and issue before you sign and notarize it.
