Short Answer

In North Carolina, if an insurer will not agree to a reasonable settlement amount, your main options are to keep negotiating with clear deadlines, use prelitigation mediation in appropriate cases, or file a lawsuit and let a judge or jury decide liability and damages. If the case goes to suit and the insurer’s refusal to negotiate or pay is found “unwarranted,” the court may have discretion to award limited attorneys’ fees in certain smaller personal injury/property damage cases. The best path depends on timing (especially the statute of limitations) and whether the insurer is simply slow or truly at an impasse.

Understanding the Problem

If you are handling a North Carolina personal injury claim and the insurance adjuster will not agree to a settlement you believe is reasonable, what can you do next to move the claim forward—especially when the assigned claims representative is out of the office and negotiations are stalled?

Apply the Law

North Carolina law does not force an insurer to accept your settlement demand just because you believe it is reasonable. When negotiations stall, the practical “levers” are (1) using structured negotiation steps that create a clear record, (2) using mediation tools available for certain insurance claims, and (3) filing a civil lawsuit before the statute of limitations runs so the dispute can be resolved through the court process. In some cases, North Carolina law also allows a judge to award attorneys’ fees (within limits) after a trial if the insurer’s refusal to negotiate or pay was unwarranted and other statutory conditions are met.

Key Requirements

• Protect the deadline to sue: Settlement talks do not automatically extend the statute of limitations. If you wait too long, you can lose the right to pursue the claim in court.
• Create a clear negotiation record: Put offers, counteroffers, and time-limited requests for a response in writing so there is no dispute about what was proposed and when.
• Use the right forum when talks fail: If the insurer will not move, the next step is often filing a lawsuit in North Carolina state court (typically Superior Court or District Court, depending on the case).
• Consider prelitigation mediation when available: North Carolina allows a form of prelitigation mediation for certain insurance claims, initiated through the Clerk of Superior Court, and it can temporarily pause certain time periods while mediation is pending.
• Understand fee-shifting is limited: In some personal injury/property damage cases, a judge may award attorneys’ fees (up to a statutory cap) if the insurer’s refusal to negotiate or pay was unwarranted and other requirements are satisfied.
• Multiple claimants add pressure and complexity: When more than one person is making claims against the same policy, the insurer may be cautious about how it allocates funds and may require coordinated settlement terms and releases.

What the Statutes Say

• N.C. Gen. Stat. § 7A-38.3A (Prelitigation mediation of insurance claims) - Allows certain insurance claims to go to prelitigation mediation through the Clerk of Superior Court and tolls time periods while mediation is pending (with conditions).
• N.C. Gen. Stat. § 6-21.1 (Attorneys’ fees in certain personal injury/property damage cases) - Permits a judge, in limited circumstances and within a cap, to award attorneys’ fees after judgment when there was an unwarranted refusal to negotiate or pay and other requirements are met.

Analysis

Apply the Rule to the Facts: Here, counsel is trying to finalize settlement negotiations for multiple claimants, but the assigned claims representative is out of the office and not responding to counteroffers. That situation usually calls for two parallel tracks: (1) tighten the negotiation process by documenting the latest demand/counteroffer and setting a reasonable response deadline (including escalation to a supervisor), and (2) protect the clients by preparing to file suit (or initiate prelitigation mediation where it fits) before any limitations period expires. If the insurer continues to stall or refuses to move, litigation is the tool that forces timelines, disclosures, and ultimately a decision-maker.

Process & Timing

1. Who acts: The injured person(s), through counsel. Where: Initially with the insurer/claims department; if using prelitigation mediation, with the Clerk of Superior Court in a county where the action could be filed. What: A written settlement demand/counteroffer with a response deadline, and if appropriate a request to escalate to a supervisor; for prelitigation mediation, a request filed with the clerk under the statute. When: As soon as negotiations stall, but always with the statute of limitations in mind.
2. If negotiations stay stuck: Consider prelitigation mediation if it fits the claim. Under North Carolina law, filing the mediation request can toll certain time periods until 30 days after mediation concludes (as reflected in the mediator’s certification), which can help when timing is tight.
3. If the insurer still won’t agree: File a civil lawsuit in the proper North Carolina trial court before the deadline to sue. After filing, the case moves into formal steps (service, pleadings, discovery, and often court-ordered mediation). If the case resolves, it ends with signed releases and a dismissal; if not, it ends with a judgment after trial or dispositive motion practice.

Exceptions & Pitfalls

• Delay vs. denial: An adjuster being out of the office may be a short-term delay, but you should still set written follow-up dates and escalation steps so the file does not drift.
• Multiple-claimant complications: When several people are negotiating against one policy, the insurer may require global terms, coordinated releases, or additional documentation before it will commit. If claimants negotiate separately without coordination, it can slow resolution.
• Assuming “reasonable” equals “required”: Even strong claims can hit negotiation ceilings. The legal system’s backstop is filing suit and proving liability and damages, not forcing an insurer to accept a number during negotiations.
• Fee-shifting misunderstandings: Attorneys’ fees under N.C. Gen. Stat. § 6-21.1 are not automatic and apply only if specific conditions are met, including a court finding of an unwarranted refusal and other statutory thresholds.
• Paper trail problems: Verbal offers and vague emails can create disputes later. Confirm offers, deadlines, and the status of authority to settle in writing.

Conclusion

In North Carolina, if the insurer will not agree to a reasonable settlement amount, your options are to tighten and document negotiations, consider prelitigation mediation when it applies, or file a lawsuit so a court process can force progress and a decision. The key threshold issue is whether you can still protect the right to sue. The most important next step is to calendar the statute of limitations and, if needed, file the complaint in the proper North Carolina trial court before that deadline.

Talk to a Personal Injury Attorney

If you’re dealing with an insurance claim where settlement talks have stalled or the insurer won’t move off an unreasonable position, an experienced personal injury attorney can help you protect deadlines, build a clear negotiation record, and decide whether mediation or filing suit is the right next step. Reach out 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.