Detailed Answer

When an insurance company issues a settlement check in Missouri, the practical steps that follow depend on who represented you, the wording on the check, and whether third parties (medical providers, Medicare, Medicaid, or lienholders) have claims against the funds. Below are the most common scenarios and what to expect.

1) You had an attorney

If an attorney handled your claim, the insurer will often make the check payable to both you and your attorney or to the attorney’s trust account. Missouri attorneys must follow rules about client funds and trust accounts (so attorneys typically deposit settlement checks into a client trust account first). Once the attorney receives the check, the usual steps are:

• Confirm all release and settlement documents are signed by you.
• Have the check deposited into the attorney’s client trust account (sometimes called an IOLTA).
• Pay valid liens, subrogation claims, medical bills, and any authorized expenses out of the settlement proceeds.
• Deduct the attorney’s fee and costs (after earlier disclosure and agreement with you).
• Send you a written settlement statement showing gross recovery, deductions (fees, costs, liens), and net amount paid to you. Then send you the net proceeds (by check or wire, per your agreement).

Timing: After the insurer issues the check, most attorneys will wait until the check clears and all lien resolutions are completed. That process can take days to several weeks depending on complexity.

2) You did not have an attorney

If you handled the matter yourself, the insurer typically mails the check to you. The check may be payable solely to you or payable jointly to you and an identified creditor (for example, a medical provider). If the check is joint-payee, all named payees must endorse the check before a bank will clear it.

3) Joint checks and payee names

An insurer sometimes issues a check that names you and a medical provider or lienholder as payees. That ensures that a medical bill or lien gets paid before you receive net funds. If you are unsure why a third party is listed, contact the insurer and ask for an explanation and an itemized settlement statement.

4) Medicare, Medicaid, and other lienholders

Federal and state programs and private health plans can have repayment or lien rights against personal injury settlements. For example:

• Medicare may require repayment for conditional payments and can demand reimbursement from your settlement. (Medicare rules are federal.)
• Missouri Medical Assistance (Medicaid) also seeks recovery when it paid care related to your claim.
• Private hospitals and health plans may record liens or issue bills that become payable from the settlement.

Before an insurer releases net proceeds, your attorney (or you) should get written lien statements or payoff figures. Medicare and Medicaid issues can require additional paperwork; resolving them before you accept and spend funds avoids future demands.

5) Minors and disabled claimants

If the injured person is a minor or is legally incapacitated, Missouri courts commonly require judicial approval for settlements. A judge will review the settlement (often through a hearing or a petition) and then sign an order directing how funds are held or distributed (for example, into a blocked account or guardianship account). Do not cash or deposit settlement checks in these situations until the court signs the necessary orders.

6) Workers’ compensation and other special programs

Workers’ compensation settlements are governed by Missouri’s workers’ compensation system. That system has its own notice and approval rules. If your claim involves a state program, follow the program’s required procedures before funds are disbursed.

7) Lost or cancelled checks

If you or your attorney lose a settlement check, notify the insurer immediately. Insurers can issue replacement checks after verifying identity and, if necessary, obtaining a stop-payment on the original check. Expect the insurer to require an indemnity or affidavit before reissuing funds.

8) Practical timing and expected delays

Common reasons for delay between issuance of the check and your receipt of funds:

• Need to resolve medical liens or subrogation claims.
• Attorney must deposit into IOLTA and wait for bank clearance.
• Court approval required for minors/incapacitated claimants.
• Medicare/Medicaid repayment matters that require additional documentation.
• Disputes over allocation of settlement among claimants or insured parties.

Where to find Missouri statutes and rules

For Missouri statutory text and official rulings, check these state resources:

• Missouri Revised Statutes: https://revisor.mo.gov/
• Missouri Courts (rules and court information): https://www.courts.mo.gov/
• Missouri Department of Social Services (Medicaid information): https://dss.mo.gov/

If you plan to rely on a specific statute (for example, regarding guardianships, lien priority, or workers’ compensation), search the Missouri Revised Statutes above or ask an attorney to point to the exact section that controls your situation.

Helpful Hints

• Do not sign a release or endorse a settlement check until you understand who will be paid from the proceeds and why.
• Ask for a written itemized settlement statement that shows gross recovery and each deduction (attorney fees, costs, medical liens, subrogation).
• If an attorney represented you, request a copy of the trust account deposit slip and the final disbursement check or wire confirmation.
• Before accepting funds, ask for written payoff figures from Medicare, Medicaid, and any medical providers who say they have liens.
• If a check is payable to you and a medical provider, confirm whether the insurer can—and will—issue separate checks instead of a joint check.
• If you are a minor or legally incapacitated, consult a lawyer before accepting or depositing any settlement funds; court approval may be required.
• Keep copies of everything: settlement agreement, release, endorsement pages, bank statements showing deposit, and any lien releases.
• Consider asking your attorney for a short written timeline so you know when to expect net funds after the insurer issues the check.

If you are unsure how the check is payable, who has lien rights, or why funds are delayed, contact a Missouri-licensed attorney who handles personal injury or insurance settlements. They can review your documents and explain your rights under Missouri law.