Detailed Answer
When an insurance adjuster offers a “full and final” settlement in Michigan, they are asking you to sign a release that typically closes the file and gives up your legal right to seek any more money from that insurer or at-fault party for that incident. In plain terms, a full-and-final release usually ends your ability to recover additional medical expenses, lost wages, pain and suffering, or other damages that arise from the same accident or incident.
How that affects you depends on the exact words in the settlement documents and the legal context (for example, whether the claim involves Michigan’s No-Fault Act for automobile accidents). Releases that include broad language such as “all claims, demands, causes of action, known or unknown, past and future” almost always bar later claims for further treatment or expenses related to the incident.
Key Michigan legal framework to be aware of: Michigan’s no-fault insurance statutes govern personal-injury protection (PIP) benefits and related issues after auto crashes. See Michigan Compiled Laws, MCL 500.3101 et seq., for the No-Fault Act, which explains what benefits are available and how claims are handled: https://www.legislature.mi.gov/mileg.aspx?page=getObject&objectName=mcl-500-3101
Practical consequences
- If you sign a full-and-final release that extinguishes future claims, you generally cannot force the insurer or the at-fault party to pay for new or ongoing treatment that you need later.
- If the settlement only allocates money for past medical expenses and explicitly reserves future claims, you may still pursue additional treatment costs later.
- If federal or state health programs (Medicare, Medicaid) or other lienholders are involved, settlement may trigger reimbursement or lien obligations you must address before closing the claim.
Options before you sign
- Delay signing until your treating provider has completed treatment or until you have a firm prognosis and cost estimate.
- Ask the insurer for a limited release that covers only past medical expenses and related damages, while expressly reserving rights to future medical expenses.
- Negotiate a set-aside, escrow, or structured portion of the settlement specifically designated to cover future medical care.
- Obtain an independent medical opinion about probable future care and use that estimate in settlement talks.
- Make sure the release identifies exactly which claims are being released and which are reserved. Do not sign ambiguous or handwritten releases you do not fully understand.
If you already signed a full-and-final release
- Your options become limited after signing. Courts in Michigan generally enforce clear releases. You can try to challenge a signed release, but relief is not guaranteed.
- Grounds to ask a court to set aside a release include fraud, mutual mistake, duress, lack of capacity, or that the release was procured by material misrepresentations. These are fact-specific and often hard to prove.
- Act quickly. If you believe the release was obtained improperly, preserve all records, medical reports, correspondence with the adjuster, and your treatment notes. Contact an attorney promptly to evaluate whether a challenge is viable.
Special issues to consider
- No-Fault PIP vs. third-party liability: In auto cases, Michigan’s No-Fault Act governs PIP benefits (medical expenses, attendant care, wage loss). A third-party liability settlement for pain and suffering and future medical expenses is different. Make sure any settlement language respects your PIP rights, or explicitly allocates portions of the recovery as appropriate under the law. See MCL 500.3101 et seq.: https://www.legislature.mi.gov/mileg.aspx?page=getObject&objectName=mcl-500-3101
- Medicare/Medicaid/ERISA: If federal or state health coverage paid for your care, they may have a lien or right of reimbursement. A full release does not eliminate those obligations. Confirm reimbursement obligations before closing the case.
- Minors and conservatorships: Settlements involving minors or people under legal disability often require court approval or special protections. Do not sign or accept settlements in those situations without legal review.
When to consult an attorney
- If the insurer’s offer is the first time you see a dollar figure but you still require medical care, speak with an attorney before signing.
- If you already signed and need more treatment, see an attorney immediately to evaluate whether a challenge to the release is plausible and to identify next steps (possible rescission, settlement enforcement defenses, or other remedies).
- If Medicare/Medicaid or other lienholders may have reimbursement claims, an attorney can help protect your net recovery.
Disclaimer: This information is educational and not legal advice. It does not create an attorney-client relationship. For legal advice about a specific situation, contact a licensed Michigan attorney.
Helpful Hints
- Do not sign a full-and-final release the same day you are offered it. Take time to review the release and consult counsel.
- Get a written medical prognosis and an itemized estimate of future care costs from your treating provider before negotiating.
- Ask for release language that explicitly preserves future medical claims if you still expect ongoing care.
- Keep copies of all medical records, bills, and correspondence with the insurer. Those records help prove any later need for additional care.
- If you accept a settlement, require the insurer to confirm in writing any lien or subrogation obligations and how they will be handled.
- Use escrow or structured settlement language when future medical expenses are uncertain; have a lawyer draft or review the arrangement.
- If you feel pressured or misled into signing, document the pressure or misrepresentations and speak to counsel immediately.
- For basic information about Michigan law and your rights under the No-Fault Act, see the Michigan Legislature’s site: https://www.legislature.mi.gov/mileg.aspx?page=getObject&objectName=mcl-500-3101
- For help locating a Michigan attorney who handles insurance or personal-injury claims, consider the State Bar of Michigan lawyer search: https://www.michbar.org/public/lawyersearch or practical self-help resources at Michigan Legal Help: https://michiganlegalhelp.org/