Detailed answer — what a full and final settlement does and your options in Vermont

When an insurance adjuster offers a “full and final” settlement, they typically want you to sign a release in exchange for payment. A release is a contract in which you give up the right to pursue further legal claims against the insurer (and usually the insured) for the same incident. In practical terms, signing a full and final release generally prevents you from recovering additional money later for additional medical treatment, lost wages, or pain and suffering from the same accident.

Key legal realities to understand:

• The release is a binding contract. Once you knowingly and voluntarily sign a valid release, courts usually enforce it. That means you lose the right to sue for additional future treatment related to the released incident.
• The timing of settlement matters. If you haven’t reached maximum medical improvement (MMI) or you have ongoing or anticipated treatment, settling too early can leave you responsible for future medical bills.
• There are limited ways to undo or challenge a release. A release may be voidable if you can prove fraud, material misrepresentation, duress, mistake, incapacity, or that the release’s terms were unconscionable. Proving one of these defenses can be difficult and fact‑specific.
• You can negotiate release language. A release can include exceptions (for example, reserving right to future medical care or excluding certain claims). You can and should ask for carve‑outs or a limited release if you expect more treatment.

Common practical scenarios

Below are typical situations and what usually follows under Vermont practice:

• You accept payment and sign a full release while still treating: Courts will normally bar later claims for more treatment tied to the same injury. You will likely be responsible for additional medical bills unless you can later prove the release was invalid.
• You accept payment but refuse to sign a release right away: Insurers sometimes send a check that says “full and final” on the back. Cashing such a check may be treated as acceptance of the settlement, so do not cash any check that is conditioned on a release you have not reviewed. Instead, ask the insurer to send a proposed release in writing and give yourself time to review it.
• You negotiate a limited release or reservation of future medicals: You can ask the insurer to include language that reserves your right to future treatment or limits release to particular categories of damages. A properly drafted carve‑out can protect you from giving up claims for later necessary care.

Special issues to consider

• Health insurer, Medicare, or Medicaid liens: Federal law and payer rules (e.g., Medicare) often require repayment from your settlement for past medical payments; that can affect how much you keep. If you have public benefits or subrogation interests, those liens should be addressed in settlement negotiations.
• Workers’ compensation and no‑fault systems: Different rules may apply if the claim involves a workers’ compensation insurer or automobile no‑fault benefits. Those programs can impact what releases are appropriate.
• Statutes of limitation: If you delay settlement because you want to wait for treatment to finish, know the applicable time limits to bring a claim. If you miss a statute of limitations, you could lose the right to sue. For Vermont statutes and general code access, see the Vermont Legislature website: https://legislature.vermont.gov/statutes/

Practical steps to protect yourself before signing

Do not sign anything or cash a settlement check without taking careful steps. Consider these actions first:

1. Ask the insurer for the proposed release in writing and read every term.
2. Do not sign a “full and final” release until you know whether you have reached MMI or your treatment plan is stable.
3. Request a limited release or a reservation for future medical expenses if any future care is reasonably likely.
4. Get a reliable estimate of your remaining medical costs from your treating providers.
5. Confirm and handle any medical liens or subrogation claims (including Medicare/Medicaid). Federal rules may require you to repay certain benefits from your settlement.
6. Consider having a Vermont attorney review the release and settlement offer. An attorney can negotiate carve‑outs and estimate future costs.

If you already signed and now need more treatment: Your options include negotiating with the insurer for additional payment (rare once you released the claim), pursuing a claim that the release was procured by fraud or mistake (requires proof), or, if appropriate, filing a new claim for unrelated injuries. Consult a Vermont attorney promptly — timelines and remedies are time‑sensitive.

Where to read more: For Vermont statutory text and general law resources, start at the Vermont Legislature site: https://legislature.vermont.gov/statutes/. For insurance consumer help in Vermont, see the Department of Financial Regulation, Insurance Division: https://dfr.vermont.gov/insurance

Disclaimer: This article explains general legal concepts and Vermont practice related to settlement releases. It is educational only and not legal advice. If you face a settlement offer, consult a Vermont-licensed attorney who can evaluate your facts and advise you on the best course of action.

Helpful Hints — what to do right now

• Do not sign or cash any check marked “final” until you review the release.
• Ask for the settlement offer and release in writing and get time to review.
• Ask your treating doctor for an estimate of future care and any expected restrictions.
• Request the insurer add a “reservation for future medicals” or a limited release if you expect ongoing treatment.
• Document all medical care, bills, and conversations with the insurer in writing.
• Check whether Medicare, Medicaid, or private health insurers have a lien or subrogation claim that must be resolved.
• If the insurer refuses to negotiate, consider contacting a Vermont attorney to explain your options and, if needed, negotiate or litigate on your behalf.
• If you feel pressured or misled into signing, take screenshots or notes and preserve any written communications — these may matter later if you challenge the release.