Short Answer

Before you sign, confirm the final net amount you will receive after attorney fees, costs, and any valid liens or reimbursements. Get written payoff figures for medical providers and health plans, resolve or negotiate those liens, and review the release language for scope (claims covered), indemnity, and confidentiality. Only sign once the insurer’s offer, lien resolutions, and disbursement plan are clear in writing.

Understanding the Problem

You want to know what you must do in North Carolina before you accept and sign a one-time lump sum settlement in a personal injury case. The insurer initially denied liability, but now offers to pay if you sign a release. You need to make sure attorney fees, costs, and any medical or health insurance liens are addressed so you understand your true net recovery before you commit.

Apply the Law

North Carolina law allows medical providers to assert liens against personal injury recoveries and sets rules for how settlement funds are distributed. Medicaid also has a statutory claim to part of a settlement when it paid for accident-related care, and some health plans (especially self-funded employer plans) may seek reimbursement under contract or federal law. You and your attorney should verify all claimed liens, obtain itemized bills, and ensure distribution follows state rules before signing a release. Settlements are usually finalized outside of court; once you sign a broad release, you cannot pursue covered claims later.

Key Requirements

• Verify all liens and bills: Collect itemized balances from providers and health plans tied to accident care.
• Confirm lawful lien amounts: Apply North Carolina limits and prioritize attorney fees and costs before medical liens.
• Negotiate reductions: Ask providers and plans for fair reductions where permitted, especially when liens would consume most of the recovery.
• Review the release: Check the scope of claims released, indemnity language, confidentiality, and tax ID/payee information.
• Approve a written disbursement: Use a closing statement showing gross settlement, fees, costs, each lien/payment, and your net.

What the Statutes Say

• North Carolina Gen. Stat. § 44-49 (Medical provider liens) - Allows providers of injury care to claim a lien on personal injury recoveries and requires itemized statements on request.
• North Carolina Gen. Stat. § 44-50 (Distribution of settlement) - Sets distribution: attorney fees/costs first; valid medical liens are limited to a portion of the remaining funds.
• North Carolina Gen. Stat. § 108A-57 (Medicaid lien and reimbursement) - Requires repayment to Medicaid from settlements, subject to statutory limits and procedures.

Analysis

Apply the Rule to the Facts: Here, the insurer has made a one-time lump sum offer after initially denying liability. Before you sign, your attorney should obtain itemized balances from your medical providers and any health plan that paid accident bills, then apply North Carolina’s distribution rules so attorney fees and costs are paid first and medical liens do not exceed the allowed share. With those verified, your attorney can negotiate reductions where possible and present you with a written closing statement showing your net.

Process & Timing

1. Who files: Your attorney. Where: To the insurer, North Carolina medical providers, and any benefit payors (e.g., Medicaid or a health plan). What: Written lien inquiries, requests for itemized bills, and review of the insurer’s release; a proposed settlement disbursement statement. When: Do this before signing; allow several weeks to receive final lien/payoff figures.
2. Once lien amounts are confirmed and reductions negotiated, your attorney finalizes the release terms with the insurer. The insurer issues the settlement check to the law firm trust account; funds are held until the check clears and lien payments are prepared.
3. Your attorney pays approved liens and costs from trust and provides you a signed closing statement showing gross, fees/costs, each lien payment, and your net recovery. You receive your net and a copy of the fully executed release.

Exceptions & Pitfalls

• Medicaid and certain health plans have independent reimbursement rights; ignoring them can delay payment or expose you to collection.
• Provider liens must relate to accident treatment and be reasonable; challenge unrelated or excessive charges.
• Do not sign a release that requires you to indemnify the insurer for unpaid liens unless lien amounts are verified and reserved for.
• For minors or incompetent adults, court approval may be required before disbursement; build in extra time.
• Confirm whether the release covers property damage, bodily injury, or both; avoid unintentionally releasing future claims.

Talk to a Personal Injury Attorney

If you're weighing a one-time settlement and want to confirm your net recovery and lien obligations, our firm has experienced attorneys who can help you understand your options and timelines. Call us today.

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.