Detailed answer: what to expect and common procedures in North Dakota

If an insurance company agrees to pay you a settlement and issues a check, the exact path that money takes from the insurer to your hands depends on a few factors: whether you have an attorney, whether there are medical liens or government interests (like Medicare or Medicaid), whether the claimant is a minor or incapacitated person, and whether you choose a lump-sum or structured settlement.

1. Who the check is payable to

Common scenarios:

• Check payable only to you (the claimant). You can endorse and deposit it into your personal bank account. If an attorney represented you, the attorney may still have a contractual or ethical claim (for fees or costs) and will expect payment from you once funds clear.
• Joint check payable to you and your attorney (e.g., “John Doe and Attorney Smith”). Both signatures are usually required to negotiate the check. This is common when an attorney has a lien for agreed fees or costs.
• Check payable to your attorney or the attorney’s trust account (IOLTA/client trust). When an attorney handled negotiations, insurers often issue the check to the lawyer or to both the lawyer and client. The attorney deposits the funds in a trust account, pays liens and expenses, then gives you the net proceeds with an itemized accounting.

2. Attorney trust account and disbursement process

If you were represented, many North Dakota attorneys deposit settlement checks into a client trust account first. That practice helps the attorney: (a) pay medical providers and other authorized liens; (b) deduct legal fees and case costs as authorized by your fee agreement; and (c) keep a clear paper trail.

Typical steps an attorney follows:

1. Receive and endorse the check (if payable to attorney or joint payees).
2. Deposit into the attorney’s trust account.
3. Clear the bank hold on the deposit (banks often place short holds on large checks).
4. Resolve liens or subrogation claims (medical providers, health insurers, or government programs such as Medicare/Medicaid may assert rights to part of the settlement).
5. Prepare a settlement statement (itemized accounting) showing gross recovery, fees, costs, lien payoffs, and your net amount.
6. Issue your net proceeds — often by check, wire transfer, or cashier’s check — and provide the accounting and closing documents for your signature as needed.

3. Lien, subrogation, and government interests

You may not receive full settlement amounts immediately if medical providers, private health insurers, Medicare, or Medicaid have claims against the recovery. Federal and state rules allow payors to recover conditional payments or protect their lien rights. These issues must be addressed before the net payment is finalized. If Medicare or Medicaid may pay for treatment related to your claim, you or your attorney should check and resolve potential repayment obligations.

Helpful government resources include the Centers for Medicare & Medicaid Services (CMS) on coordination of benefits: CMS — Coordination of Benefits & Recovery.

4. Special situations — minors, incapacitated claimants, or conservatorships

If the settlement beneficiary is a minor or legally incapacitated, North Dakota law and court practice often require court approval before final distribution. The court typically approves the compromise and directs how funds are held or distributed (for example, requiring funds be placed in a blocked account or paid to a guardian). For self-help information about guardianship and conservatorship procedures in North Dakota, see the North Dakota Courts resource: ND Courts — Guardianship & Conservatorship.

5. Timing — how long until you receive money?

Timing depends on:

• How quickly the check clears at the bank (holds can be several business days for large amounts).
• Time required to identify and negotiate lien payoffs and third-party claims.
• Whether court approval is required (minors/incapacitated persons).
• Administrative processing if an insurer issued a joint check and a third party also needs to sign.

Simple, uncontested cases often clear in a few business days after deposit. Cases with multiple liens or court approval needs can take weeks or longer.

6. How you will receive the final funds

Once all deductions and obligations are handled, you typically receive your net settlement by one of these methods:

• Personal check from the attorney or from the insurer (if payable directly to you).
• Cashier’s check or certified funds (common for larger sums).
• Wire transfer to your bank account, if you agree and provide instructions.
• Structured settlement annuity payments if you elected periodic payments instead of a lump sum.

7. Paperwork you should expect

You should receive:

• A copy of the signed release you signed to settle the claim.
• An itemized settlement statement showing gross recovery, attorney fees, costs, lien payments, and your net proceeds.
• Receipts or payoff statements showing liens were paid, if applicable.
• Any court orders required for release of funds (for minors/conservatorships).

8. What to watch out for

Be cautious about:

• Signing a broad release before knowing whether liens or subrogation issues will reduce your recovery.
• Endorsing joint checks without clear instructions about disbursement; joint checks often require joint signatures to negotiate.
• Allowing anyone to pressure you into accepting a payment method you do not understand (e.g., assigning proceeds to a third party).

If you are represented, ask your attorney for a written explanation of how and when you will be paid, and ask for an itemized final accounting when funds are disbursed. North Dakota attorneys are governed by professional conduct rules requiring they safeguard client property and provide appropriate accounting; for information about North Dakota court rules and ethics, see: ND Courts — Rules.

Helpful hints — checklist before and after the insurer issues the check

• Confirm who the check is made payable to before the insurer issues it.
• If you have an attorney, request a written timeline that explains how the check will be handled and when you will receive net proceeds.
• Ask for a detailed settlement statement and copies of any lien payoff documents when funds are distributed.
• If a check is payable to both you and your attorney, expect both endorsements before deposit; understand why that happened.
• Check for potential Medicare/Medicaid or private insurer subrogation and make sure your attorney addresses those claims before final distribution.
• For minors or incapacitated persons, confirm whether court approval is required and how funds will be held or distributed.
• Never sign a full release or accept final payment without understanding how liens and fees will reduce your share.
• If you prefer immediate access to funds, ask about a lump-sum versus structured settlement and discuss tax and long-term implications with counsel and a tax advisor.
• Keep copies of all settlement documents and the final accounting; these records protect your rights if a lien reappears later.