How you receive settlement funds after the insurance company issues the check (Alaska)

Short answer: How you actually receive settlement money depends on who the insurer makes the check payable to, whether you have an attorney, and whether there are liens, minors or competency issues. Typical paths are: the insurer mails a check payable to you (you deposit it), the insurer issues a check payable jointly to you and your attorney (you both endorse), or the insurer makes the check to your attorney, who must place the money in a client trust/escrow account before paying you after fees and liens are handled.

Detailed answer

Who the check is made payable to

The first key fact is the payee name on the insurance check:

Made payable to you alone: You can endorse and deposit it into your bank account. If you have outstanding medical liens or other legal obligations tied to the claim, your attorney may ask you to deposit into a trust or sign releases so those debts get paid from the proceeds.
Made payable to you and your attorney: Most banks require both payees to endorse. Many attorneys instead ask the insurer to issue the check to the attorney or to the attorney and client, so the attorney can handle liens and fee deductions.
Made payable to your attorney alone: When you are represented, insurance companies commonly issue settlement checks to the attorney or to the attorney and client. The attorney must follow trust-account rules and hold client funds in a designated client trust (escrow/IOLTA) account until the attorney provides an accounting and obtains client authorization to disburse.
Made payable to multiple claimants: If multiple people (co-plaintiffs, spouses, etc.) are listed, most banks require signatures from all payees unless otherwise arranged.

Attorney handling: trust account, accounting, liens, and fees

If an attorney receives the settlement funds, Alaska attorneys must follow professional rules about client funds and records. Practically, that means:

The check generally goes into the lawyer’s client trust or escrow account rather than the lawyer’s operating account.
The lawyer prepares a settlement statement or closing ledger showing gross settlement, attorney fees, litigation costs, and amounts paid to lienholders (medical providers, subrogation claimants, Medicare/Medicaid, etc.).
The lawyer pays valid liens and subrogation demands before sending you the net proceeds. If lien resolution is disputed, the attorney should notify you and try to resolve or seek a court order.
The lawyer then issues your net check or wires your portion once all releases and obligations are satisfied.

Common hold-ups and timeframes

Typical timing depends on complexity. Simple claims where the claimant receives and deposits a check can clear in a week or so. If an attorney receives funds, expect 1–6 weeks for deposit, lien resolution, accounting, and disbursement. Complex lien negotiations or court approval (see below) can add months.

Situations that change how funds are distributed

Minors and legally incompetent persons: Many settlements for minors or incapacitated people require court approval or special handling (guardian or guardian ad litem, blocked accounts, or court-supervised settlement). For these cases, the court may require an application and order before money is released.
Medicare/Medicaid lien and reporting: If Medicare or Medicaid paid for care related to the claim, federal law and Alaska Medicaid rules can create repayment or reporting obligations. Your attorney must identify and resolve those before disbursing funds. See Centers for Medicare & Medicaid Services for federal rules: https://www.cms.gov, and Alaska Medicaid info at the Alaska Department of Health and Social Services: https://dhss.alaska.gov.
Liens and subrogation: Medical providers, health plans, and other insurers may have liens. These must be evaluated and satisfied or litigated before full distribution.
Structured settlements: Rather than a lump sum, you can negotiate a structured settlement where periodic payments (annuity) replace or supplement a lump-sum payment. That requires a separate annuity contract with an issuing insurer or third-party broker.

What you should receive from your attorney before or with disbursement

An itemized settlement ledger showing all deductions (attorney fees, costs, liens paid).
A copy of the signed release you gave the insurer and proof that the insurer issued the check.
Copies of lien payoff receipts or emails documenting amounts paid to third parties.
A clear explanation of any tax considerations (most personal injury settlements for physical injuries are not taxable, but other components may be).

What to do if you don’t get your money or you have concerns

Ask your attorney for a written explanation and a copy of the settlement ledger and bank deposit that shows the client trust deposit.
If you suspect mishandling of client funds, you can contact the Alaska Bar Association or the appropriate regulatory authority to learn about filing a complaint. See the Alaska statutes and professional rules resource for more information: https://www.akleg.gov/basis/statutes.php.
If a court-ordered process applies (for a minor or conservatorship), you can ask the attorney for the court order showing disbursement instructions.

Helpful Hints

Before signing a release, ask the insurer or your attorney how the check will be made payable and when you will actually receive money.
Request an itemized settlement statement in writing. Don’t accept a vague verbal breakdown.
Ask your attorney where client funds will be held (trust account) and for a copy of the trust accounting if you have questions about timing or amounts.
If Medicare or Medicaid paid for healthcare related to the claim, inform your attorney immediately so they can handle reporting and repayment obligations.
If you are a minor or under a guardian, expect court involvement. Ask your attorney to outline the court steps and timeline.
If you prefer electronic transfer, ask whether the attorney can wire your net proceeds rather than mailing a check.
Keep copies of all settlement documents, communications with the insurer, and the deposit/endorsement records until the matter is fully closed.

Where to find Alaska legal rules and help

For Alaska statutes and codes, start with the Alaska Legislature’s statutes site: https://www.akleg.gov/basis/statutes.php. For federal Medicare reporting and lien rules, see the Centers for Medicare & Medicaid Services: https://www.cms.gov. For Alaska Medicaid particulars, see the Alaska Department of Health and Social Services: https://dhss.alaska.gov.

Final note and disclaimer

This article explains common practice and general Alaska law considerations about receiving settlement funds. It is educational only and not legal advice. If you have questions about your specific settlement, how a check should be handled, liens, or timelines, consult a licensed Alaska attorney who can review your file and give advice tailored to your situation.