Disclaimer: This article explains common practices under Ohio law but is not legal advice. For advice about your specific case, consult a licensed Ohio attorney.

Detailed answer: how settlement checks are issued and delivered in Ohio

After you settle a claim with an insurance company, the company will normally issue a check or move to an electronic payment. How you actually receive your money depends on a few key facts: whether you have an attorney, what the settlement release requires, the payee listed on the check, and whether any medical liens, subrogation claims, or government interests (like Medicare) must be satisfied first.

1. Who the check is made payable to

• Payable to you alone: The insurer issues the check in your name only. You can endorse and deposit it yourself. If you have a signed contingency agreement with an attorney, your attorney will expect to be paid from those funds. Most attorneys will ask the insurer to reissue the check jointly to avoid endorsement problems.
• Payable to you and your attorney (joint payees): This is common. The check will usually require both endorsements or endorsement by your attorney’s trust account. Joint payee checks make it easier for the attorney to deposit the funds into the client trust account and distribute them according to your retainer and any liens.
• Payable to your attorney (or your attorney’s client trust account): Some insurers will issue the check directly to your lawyer or to the attorney’s fiduciary trust account (IOLTA). This is often the cleanest route where an attorney represents you.

2. Role of your attorney (retainer agreement and trust account handling)

If an Ohio attorney represents you, the attorney will follow the retainer agreement and the Ohio Rules of Professional Conduct for handling client funds. Rule 1.15 sets standards for safekeeping client property and maintaining client trust accounts. See the Ohio Supreme Court rules for attorney obligations: Ohio Rules of Professional Conduct.

Typical practice:

1. The attorney receives the check (or the check is endorsed jointly).
2. The attorney deposits the money into a client trust account (separate from the lawyer’s business account).
3. The attorney clears outstanding costs and liens (medical bills, subrogation, court costs), takes the agreed attorney fee, then issues a settlement distribution to you.

3. Liens, subrogation, and government interests delay distribution

Before you see a net payment, third-party claims may need resolution. Common holds include:

• Medical provider or hospital liens.
• Health insurer subrogation claims.
• Medicare conditional payments or Medicaid liens. Medicare has rules for how its conditional payments must be repaid or resolved before you get the full settlement amount; see Medicare’s coordination/recovery information: CMS — Coordination of Benefits and Recovery.

An attorney usually negotiates these liens and secures written payoff figures or releases before disbursing funds. Until liens are resolved, your attorney may hold the funds in trust.

4. Timing and bank clearing

Even after the insurer issues the check, banks often place a hold while confirming funds. Attorneys usually wait until the deposit clears and any liens or holds are resolved before making final disbursements. Expect anywhere from a few business days to several weeks depending on lien complexity and third-party approvals.

5. If the insurer issues the check only to you but you have an attorney

If the check is payable only to you and you have a signed fee agreement, tell the insurer and ask them to reissue it jointly to you and your attorney or to the attorney’s trust account. If the insurer refuses, your attorney can advise you about options (for example, having you endorse the check to the attorney, or asserting an attorney’s charging lien or other remedies available under Ohio law). Discuss this with your lawyer before you endorse or cash any settlement check.

6. How you will receive the net funds

After the attorney pays liens, reimburses advanced costs, and takes fees as agreed, they will distribute the remaining funds to you. Common methods:

• A personal check from the attorney’s trust account or business account.
• A bank wire or electronic transfer if you and the attorney agree.
• A check directly from the insurer to you if all parties have already been paid and no hold remains.

7. Tax and reporting considerations

Some parts of a settlement (for example, punitive damages or taxable lost wages) may be taxable. Attorneys generally advise you to consult a tax professional prior to distribution. Attorneys may issue or request tax forms (such as 1099s) when appropriate.

Helpful hints — practical steps to speed receipt of your settlement

• Read and keep a copy of the settlement agreement and release. The release will tell you when the insurer must pay and to whom.
• If you have an attorney, confirm in writing who the check should be payable to (you, you and attorney, or attorney’s trust account).
• Ask your attorney for a written payoff or plan for known liens (medical bills, health insurer subrogation, Medicare/Medicaid) so you know what will be deducted.
• Don’t endorse or cash a settlement check until you understand whether liens or fee disputes remain.
• If the insurer makes the check payable only to you but you prefer it jointly payable, request reissuance before you cash it.
• Confirm how and when the attorney will deliver the net proceeds to you (check, wire, or other method) and get a written disbursement statement showing deductions and fees.
• Keep all paperwork: settlement agreement, release, itemized disbursement ledger from your attorney, and receipts for payments made on your behalf.
• For Medicare/Medicaid issues, notify your attorney early; the process to resolve conditional payment claims can take additional time. See CMS guidance: Medicare coordination and recovery.

Where to look in Ohio law and rules

Ohio attorneys must follow the Ohio Rules of Professional Conduct on safekeeping and disbursement of client funds. See the Ohio Supreme Court resources on professional conduct: Ohio Rules of Professional Conduct. For Ohio statutes and any specific lien statutes, see the Ohio Revised Code: Ohio Revised Code (codes.ohio.gov). Your attorney can point to the specific statutes or case law that apply to liens or charging liens in your situation.