Overview

1. Filing a Claim: The first step in the settlement process is filing a claim with the insurance company or the court.

2. Investigation: Once the claim is filed, an investigation will take place to gather evidence and assess the damages.

3. Negotiation: After the investigation, negotiation between the parties involved will begin to reach a fair settlement amount.

4. Settlement Agreement: When an agreement is reached, the settlement amount will be decided, and both parties will sign a settlement agreement.

5. Payment: The final step is the payment of the settlement amount, which can be made in a lump sum or in structured payments over time.

This outlines the general process for a personal injury settlement payout in California.

1. General personal injury settlement

A California personal injury settlement is an agreement between the parties that resolves short of trial. However, every case is unique, and the specific details of your case may vary from what we discuss here. This is not legal advice.

2. Start by signing the release form.

After you have been in an accident and injuries have been diagnosed, your personal injury lawyer will likely settle your case with the liable party’s insurance company.

Once a proposal is made, your lawyer will go over the details with you and, assuming you approve, will prepare a release form for you and the defendant(s) to sign. This document will release the defendant(s) from any future liability in exchange for their payment of a certain sum.

Both the liable party and the injured person will sign a settlement release form after agreeing on a settlement offer. This legally confirms that the agreed-upon amount will be paid and that no one involved can sue for more money in the future. 

Without signing this form, all responsible parties would still be open to being sued for damages or held liable.

Having a personal injury attorney review this agreement and release form before you sign it is crucial, as it will likely contain language that releases the company from liability even if your injuries turn out to be more severe than initially thought.

3. The insurance company writes a check: You and your attorneys’ names

Once you have signed the release, the insurance company of the liable party or parties reviews. 

The insurance company will then issue a settlement check that will be written to you and your attorneys’ names.

In California, the insurance company must pay and issue a check immediately after all parties agree and accept the settlement claim. The insurer must do so within 30 days from the settlement date.

4. Your personal injury lawyer deposits the check

The attorney then deposits the settlement check into what his called an IOLTA account —or Interest on Lawyers’ Trust Accounts. This account is solely for client money, which remains until the case’s final resolution. Only approved financial institutions can have these accounts, which make it so the law firms do not earn interest over time on clients’ money.

The settlement proceeds reflected in this check will be used to pay for any outstanding medical bills, liens, and other expenses related to your case.

Once the claim has been accepted, the insurer must pay the claim immediately, but in no event later than 30 days from the date settlement was reached. 

5. Your attorney negotiates the medical bills and any liens

Before receiving your due compensation, you must take care of any medical bills. Your lawyer can provide legal advice on potential solutions, such as medical liens and how to make the most of your health insurance, but it will vary.

Personal injury attorneys can also negotiate your medical treatment with medical providers, ensuring that you can receive the care and healing while receiving the settlement money you deserve.

The law states that all liens must be fully settled before any settlement funds can be accepted.

By negotiating with liable parties, the attorney ensures that the injured party receives a fair settlement and payout, with all medical expenses are considered. It also looks after the injured party, so they will not be responsible for unpaid debts after the settlement is paid out.

In some cases, the personal injury attorney may be able to negotiate compensation for pain and suffering or emotional distress. They can also facilitate a lump sum payment from the liable party or parties that would cover all of your debts—providing a much-needed financial cushion after an accident.

6. You receive your money, typically win a lump sum

Your lawyer will give you a written invoice, which includes the settlement amount minus liens and legal fees such as attorney’s fees and contingency fees. Once signed off, expect to receive your settlement check promptly via mail.

A lump sum payment, involves receiving the full settlement amount upfront.

Lump-sum settlement gives you the freedom to use the money however you’d like, but it can also be tempting to overspend or make rash financial decisions. It is not wise to hand large sums of money, you may want to consider structured payments instead.

If you are seeking a personal injury attorney, we can help, or we know someone that can, call Kintzele Law Group today.