What to Expect When an Insurance Company Issues a Settlement Check in Nevada

Short answer: The way you receive your settlement funds depends on whose name is on the check, any liens or bills that must be paid first, whether an attorney is handling the matter, and special rules if the claimant is a minor or legally incapacitated. In Nevada, most attorneys will deposit settlement checks in a client trust (IOLTA) account, pay outstanding liens and fees, and then deliver the net funds to you. This article explains the common paths from an insurer issuing a check to you getting the money, and what to watch for.

Detailed Answer — Step-by-step: How settlement funds move from insurer to you

1. Who is named on the check?

The first thing to check is the payee line on the check. Typical possibilities:

• Your name only: You may be able to endorse and deposit or cash the check yourself. If you have an attorney, the insurer may still require you to sign the release in front of a notary or have the attorney confirm settlement before issuing payment.
• Your name and your attorney’s name (joint payees): Both you and your attorney usually must endorse the check. Many firms will take possession and deposit it into a client trust account, then handle disbursements.
• Payable to third-party lienholders or medical providers: Sometimes an insurer issues the check to the claimant and a medical provider or lienholder. That allows the lienholder to endorse and receive payment directly.
• Payable to the attorney only: Less common, but some insurers send funds to counsel. Attorneys must account for and promptly turn over client funds after paying permitted fees and authorized expenses.

2. If you have an attorney: deposits, trust accounts, and disbursement

When an attorney receives client settlement funds in Nevada, professional rules require careful handling. Most commonly:

1. The attorney deposits the funds into a client trust (IOLTA) account promptly. These accounts keep client money separate from the lawyer’s business funds.
2. The attorney pays outstanding liens and costs (medical bills, medical providers’ liens, subrogation claims such as Medicare/Medicaid conditional payments, court costs, expert fees) as authorized by the client and applicable rules or statutes.
3. The attorney takes the agreed attorney fee (for contingency-fee cases that is usually a percentage of the recovery) and reimburses case-related expenses shown on an itemized statement.
4. The attorney issues a final accounting and sends the net amount to the client by check or electronic transfer, after you sign any releases required by the settlement.

Ask your attorney for a written, itemized settlement statement showing gross recovery, fees, costs, lien payments and net funds delivered to you.

3. Common types of deductions that reduce the check you receive

• Attorney fees and costs: Contracted contingency fee and out-of-pocket expenses.
• Medical providers’ liens and bills: Doctors, hospitals or collection agencies can claim payment from the recovery.
• Medicare/Medicaid or other health-plan subrogation: Federal law and program rules may require repayment when the program paid for treatment related to the claim. The Centers for Medicare & Medicaid Services (CMS) enforces Medicare conditional-payment recovery; you or your attorney should check with CMS if Medicare paid related services: https://www.cms.gov/.
• Child support or tax liens: Government liens (state child support, IRS liens) may attach to settlement proceeds and can be collected before you get the remainder.

4. If the claimant is a minor or incapacitated person

Nevada requires extra protections. Courts often must approve settlements for minors or legally incapacitated claimants. If the court must approve, funds may be placed in a blocked account, conservatorship account, or structured settlement annuity until the minor or protected person can receive them. If you think a person in your case is a minor or legally incapacitated, tell your lawyer immediately so the required court steps can be taken.

5. Structured settlements and annuities

For large awards, parties sometimes agree to a structured settlement: the insurer buys an annuity that pays the claimant over time. Instead of receiving a lump sum check, you receive periodic payments according to the annuity contract.

6. Timing and practical matters

• Even after the insurer issues a check, banks may place holds. Funds can take several business days to clear.
• Attorney trust accounts require processing time to confirm lien payoffs and complete the final accounting before release of net funds.
• If a check is stale-dated or returned, contact your attorney or the insurer promptly to reissue payment.

7. If you disagree with how funds are being handled

Ask your attorney for the itemized accounting and copies of any lien releases or payoff statements. If you still have concerns, you can contact the State Bar of Nevada for guidance on attorney handling of client funds, and review the Nevada Revised Statutes and court rules that govern trust accounts and attorney responsibilities. Nevada legislative information is available at: https://www.leg.state.nv.us/NRS/

Helpful Hints

• Before you sign any release: ask for a complete, written settlement breakdown showing gross recovery, attorney fees, costs, all lien payments, and the net to you.
• Verify the payee names on the check when you receive it. If you are unsure how to endorse or deposit it, call your attorney or the insurer before endorsing.
• If Medicare or another payer paid for treatment, notify your attorney so they can confirm whether repayment or a Medicare recovery claim is required.
• If you are a minor or legally incapacitated, insist that required court approvals are obtained before any funds are released.
• Keep copies of every document: the settlement agreement/release, the check, bank deposit records, and the final accounting from your attorney.
• Ask about payment method options — some firms can issue direct deposit for net proceeds, which is faster than a paper check.
• If a medical provider or collections company claims a lien, request written proof and payoff instructions before any funds are paid to them.
• If you suspect mishandling of client funds, contact the State Bar of Nevada and review Nevada rules on attorney conduct: https://www.leg.state.nv.us/NRS/.

Final note (important): This article is educational only and does not create an attorney-client relationship. It is not legal advice. Laws and rules change; if you have questions about how your settlement check should be handled under Nevada law, talk with a licensed Nevada attorney who handles settlements and client trust accounts.