How settlement funds are delivered after the insurance company issues the check

Short answer: How you receive settlement funds in Idaho depends on whether you have an attorney, whether third-party liens (medical providers, Medicare/Medicaid, or other creditors) exist, and how the insurance company made the check payable. Common outcomes are: a check made payable to you alone, a check made payable jointly to you and your attorney, or checks made payable to you and one or more lienholders. Your attorney (if you have one) will normally receive, clear, and distribute funds from a client trust account after paying agreed fees, costs, and valid liens.

Detailed answer — step by step

1. Who the check is payable to

There are three typical ways an insurer issues a settlement check:

Payable to you only: If no attorney or lienholder is named, the insurer may issue a check payable to the claimant. You can endorse and deposit that check once any required releases are signed.
Joint payee — you and your attorney: If you used an attorney, many insurers will list both your name and your attorney’s firm. That requires the attorney to endorse or deposit the check into the firm’s client trust (IOLTA) account before distributing net proceeds to you.
Joint payee(s) with lienholders: The insurer may name medical providers, hospitals, or other lienholders on the check. Those parties may need to endorse or release their lien before you can receive net proceeds.

2. If you have an attorney

Most personal-injury or property-claim cases are handled under a contingency agreement. When the insurer issues a check payable to you and your attorney, the common process in Idaho is:

Your attorney obtains the check and deposits it into the firm’s client trust account (also called an IOLTA or escrow account) per professional rules. Idaho attorneys follow the Idaho Rules of Professional Conduct and court oversight. For general information about the Idaho rules and ethics: Idaho Supreme Court and the Idaho State Bar.
The attorney arranges payment of valid liens, outstanding medical bills, court costs, deposition costs, and other agreed disbursements. The attorney typically requests written payoff demands from lienholders so the amounts paid are clear and documented.
The attorney deducts their agreed contingency fee and reimburses litigation costs per your fee agreement. The attorney prepares a settlement distribution statement showing the math.
The attorney issues the net settlement funds to you (by check or wire) and provides a written closing statement. Any remaining releases or lien satisfactions are recorded or sent to the lienholders.

Because the attorney must clear liens and follow trust-account rules, it commonly takes anywhere from a few days to several weeks from the insurer’s check issuance until you receive your net funds. If a lien dispute or a government payback obligation (Medicare/Medicaid) exists, it can take longer.

3. If you are unrepresented

If you do not have an attorney, the insurer will usually pay you directly. If the insurer names lienholders on the check, you cannot receive funds until those lienholders endorse or release their claims. You should:

Obtain a written settlement statement from the insurer.
Request written payoff figures and release language from each medical provider or lienholder.
Consider consulting an attorney before endorsing a check that includes other payees or before signing broad releases.

4. Common deductions from gross settlement

Attorney contingency fees (if applicable).
Reimbursed case costs (experts, depositions, filing fees, medical record charges).
Valid medical liens and provider bills.
Health-plan subrogation or Medicare/Medicaid repayment obligations (these can have federal rules requiring notice and a process).
Outstanding liens from other creditors, if court-ordered or valid under Idaho law.

5. Medicare, Medicaid, and subrogation concerns

If Medicare or Medicaid paid for medical treatment related to your claim, federal and state rules may create a repayment obligation. Those programs typically require notice and may have a deadline to assert the claim. Your attorney should handle the necessary notifications and negotiate or confirm the program’s demand before distribution. See the Idaho agencies and federal Medicare guidance for details; your attorney will usually coordinate the payoff.

6. Typical timeline

Timelines vary but expect:

Simple, no-lien cases — a few days to two weeks after insurer issues the check.
Cases with liens, government paybacks, or complex subrogation — several weeks to months depending on negotiation and documentation.

7. What if there’s a dispute about who should get the money?

If lienholders or the insurer dispute distribution, the matter can require resolution by negotiation, litigation, or a court-approved escrow. Do not spend funds until you have a clear, written accounting and releases for the amounts claimed.

Helpful Hints

Get a written settlement distribution statement before you accept or cash any check. It should list gross recovery, fees, costs, lien payoffs, and your net.
Ask for written payoff demands from any medical provider or lienholder; verify that payoffs include fees and interest through the expected payoff date.
Never sign a broad general release before you understand all liens and how funds will be distributed.
If Medicare or Medicaid might have paid related medical bills, notify them immediately and have your attorney obtain a demand figure in writing.
Confirm how you will receive your net recovery (paper check, bank wire, or other) and when — ask for the date in writing.
Keep copies of all settlement documents and communications about distributions and lien satisfactions.
Consider at least a brief consultation with an attorney before endorsing any joint-payee check or resolving disputed liens; many Idaho attorneys offer free or low-cost consultations.
Check for any tax issues: portions of settlement for physical injuries are typically treated differently than punitive damages or lost wages. Consult a tax advisor for specific tax advice.

Resources and where to get help

Idaho State Bar — general lawyer referral and ethics information: https://isb.idaho.gov
Idaho Supreme Court — court rules and attorney oversight: https://isc.idaho.gov
Idaho Legislature (statutes and codes): https://legislature.idaho.gov

Important: This article explains common procedures in Idaho and offers general information to help you prepare and ask the right questions. It is not legal advice and does not create an attorney-client relationship. For advice specific to your situation, consult a licensed Idaho attorney.