After a personal injury case or an insurance claim is settled, the next step is to prepare and issue the settlement check to the claimant. Settlement checks are the value of the settlement that is agreed upon and are processed in a very secure manner to ensure proper payment.
People do wonder, “how are settlement checks mailed?”, and how long it takes from the when the settlement is agreed upon to when the claimant gets payment.
What Happens After a Settlement is Reached?
When an agreement is reached (by negotiation or by court approval), the defendant or the defendant’s insurance company will start the process for payment. This will usually include several administrative processes.
This includes preparation of the settlement agreement document, obtaining signatures on the settlement agreement, and sometimes this will involve obtaining court approval by a judge after the signature stage.
Many settlements involve a release for the claimant to sign, waiving the right to file any further claims about the accident. Once all of this is set, the defendant’s insurance company and/or the defendant’s attorney will deal with their finance department or claims department to process the settlement check.
In some situations, the agreement will state that the check will be made out directly to the claimant, or in other situations, it will be made out jointly to both the claimant and their attorney. This will depend on the laws of the state and the terms of the agreement.
How Are Settlement Checks Mailed and Delivered?
Settlement checks are almost always mailed, via a process that maintains physical security, in order to prevent loss and/or fraud. Usually, this requires certified mail or some sort of tracking service.
Often, attorneys prefer to receive the check first because they need to address any lien payments or pay court fees before handing over the amount to the claimant.
How Long Does It Take to Get a Settlement Check?
This depends on many factors, but the timeline for when a claimant receives a check after their settlement approval can vary widely depending on the details of the case and how quickly the parties make themselves available.
Typically, the estimate is two to six weeks after the settlement is approved. The factors that impact the timeline for the payout include:
- The amount of time for drafting and signing the so-called “closing documents”
- An insurance company or the defendant’s organization must obtain the internal approval for the issue of payment.
- The speed at which the mail can be delivered.
- Subtraction of any amounts due for any outstanding issues (e.g., lien resolution or medical lien deduction).
Key Points:
- Settlement checks are mailed out when all settlement documents are signed, and approved.
- Typically, it takes 2-6 weeks to receive the settlement check.
- Delays may be due to paperwork issues, lien resolution, and postal mail service issues.
- If delays occur, you should contact your attorney or claims handler.
