What to expect when the insurer issues a settlement check in Florida

Disclaimer: This is general information and not legal advice. For guidance on your specific case, talk with a licensed Florida attorney.

Detailed answer

When an insurance company issues a settlement check in Florida, the exact path the money takes depends on how the check is made payable and what legal or contractual claims (liens, subrogation, medical bills) must be paid first. Below are the common scenarios and what they mean for you.

1) Who is the check made payable to?

Payable to you alone: If the insurer issues the check in your name only, you control endorsement and deposit. You may deposit it yourself or bring it to your attorney for processing. Many attorneys ask clients to sign the check over to the law firm or to endorse it in the attorney’s presence so the firm can handle lien/payment obligations.
Payable to you and your attorney (joint payees): More common in contingent-fee cases. The check will usually list both your name and the attorney’s or law firm’s name. Joint-payee checks must be deposited into the attorney’s trust account (IOLTA/trust) so the lawyer can clear the funds, pay liens and costs, and then distribute the client’s share.
Payable to a third party (hospital, medical provider, lienholder): Sometimes insurers write a check directly to a provider to satisfy a lien or bill. You should get a written accounting showing what was paid on your behalf and what remains for you.

2) Attorney trust accounts and handling

When a lawyer receives settlement funds on a client’s behalf, Florida’s professional rules require the attorney to keep client funds in a trust account until properly disbursed. Most firms deposit joint-payee checks into their trust account, confirm the check clears, pay outstanding liens and case costs, then issue a settlement statement and send the net amount to the client.

Because bank availability rules and clearing times vary, attorneys commonly wait until the funds are actually collected by the bank before releasing money. That protects clients from a situation where the check initially appears to clear but later bounces.

3) Paying liens, bills and subrogation demands

Before you receive net settlement funds, these commonly must be resolved:

Medical provider bills and private liens.
Health insurer or auto insurer subrogation claims.
Medicare or Medicaid claim recovery (federal/state rules may require repayment of benefits from a settlement).
Attorney’s fees and case costs (based on your fee agreement).

Attorneys typically attempt to negotiate liens or demand letters so you keep more of the recovery. Some liens are governed by Florida law or by federal law (for Medicare). For background on Florida insurance law (the source of many insurer obligations), see Florida Statutes, Chapter 627 (Insurance): Fla. Stat. Ch. 627. For Medicaid-related matters that can affect recoveries, see Florida Statutes, Chapter 409: Fla. Stat. Ch. 409.

4) Timing: how long until you get the money?

Typical timing depends on:

How the check is written (single vs. joint payee).
Whether funds must be used to pay liens or bills and how quickly those can be negotiated or satisfied.
Bank clearing rules and whether the check is certified or regular.

In many cases, you can expect a few business days to a few weeks after the insurer issues a check before you receive net funds. Attorneys often allow additional processing time to confirm collection and resolve outstanding obligations.

5) What paperwork should you get?

A copy of the insurer’s check or a payment confirmation.
A written settlement agreement and release describing the amounts, who is being paid, and what claims are being released.
An itemized settlement statement (also called a closing statement) showing gross recovery, attorney fees, costs, and all lien payments or other deductions, plus your net payment.
Receipts or lien satisfaction letters when third parties are paid.

6) If you don’t get the money or disagree with deductions

If you believe funds were misappropriated or you didn’t receive an accurate accounting, raise the issue with your attorney first and ask for a written itemization. If the response is unsatisfactory, you may consider filing a grievance with The Florida Bar regarding trust account handling or seek other remedies through the courts. The Florida Bar’s rules govern client trust accounts and lawyer conduct.

Helpful Hints

Ask before settlement: Request in writing how the check will be made payable and how liens will be handled.
Get a written fee agreement: Confirm your attorney’s fees, costs, and how net proceeds will be calculated.
Don’t sign release documents until you understand who will be paid and what you will receive.
Keep copies: Maintain copies of the release, settlement statement, and any lien waivers or satisfactions.
Confirm clearing: Ask your attorney how long they will wait to confirm the check clears before issuing payments to you or others.
Watch for government liens: Medicare and Medicaid have repayment rights that can affect your net recovery; your attorney should address these before you receive funds.
Request a final accounting: You have a right to a clear, itemized accounting of how settlement funds were distributed.

If you want help understanding a specific settlement check or a settlement statement, consider contacting a Florida attorney to review your documents and explain your options.