How to handle an insurer’s “full and final” settlement offer when you still need medical treatment
Detailed Answer
When an insurance adjuster presents a “full and final” settlement while you still require medical care, you are being asked to give up all current and future legal claims related to the injury in exchange for a one-time payment and a signed release. Signing a full-and-final release usually bars you from recovering more money later for treatment, complications, or newly discovered injuries tied to the same incident.
Key effects under Nevada practice:
- If you sign a properly drafted full release, the insurer will almost always be able to rely on that release to deny additional payment for future treatment tied to the same injury.
- Insurers must follow Nevada insurance laws and fair-claims standards. Chapter 686A of the Nevada Revised Statutes addresses unfair insurance practices and consumer protections for claimants. You can review that chapter here: NRS Chapter 686A (Unfair Insurance Practices).
- Even if a release was signed based on inaccurate or incomplete information, reopening a finalized settlement is difficult. You would generally need to show fraud, misrepresentation, duress, mutual mistake, or some other legal basis to rescind the release — facts that are highly fact-specific and often require litigation.
Practical steps and options before you sign
- Do not sign releases while treatment is ongoing. If you still need evaluation, diagnostic work, or treatment, tell the adjuster you will not sign a full release until your medical condition stabilizes.
- Ask for an offer that reserves future medicals. You can request a settlement that pays past medical bills and certain non-economic losses but expressly reserves the right to recover future medical costs if they become necessary. An alternative is a partial release that releases liability only for bodily injury to the date of settlement.
- Negotiate special language. Consider asking for: (a) language stating the release applies only to known injuries and not to future treatment; (b) a structured settlement or periodic payments for ongoing care; or (c) the insurer to set aside funds for future medical care.
- Get a medical assessment. Obtain a current medical opinion in writing about prognosis and potential future treatment needs. This helps establish your reasonable expectancy for future care and supports a demand for funds to cover it.
- Consider medical liens or provider agreements. If you accept a lump sum, negotiate liens or provider agreements so your treating providers agree to accept reduced payment or wait for settlement funds.
- Consult an attorney before signing. An attorney who handles similar claims can evaluate the settlement offer, negotiate reserve language, and explain your options. If you sign without counsel you will likely lose the right to additional recovery.
If you already signed a full-and-final release
- Do not assume you are without options, but understand the bar is high. Possible remedies include alleging the release was obtained by fraud, misrepresentation, mutual mistake, duress, or that the insurer engaged in bad-faith settlement conduct under Nevada law (see NRS Chapter 686A).
- Collect and preserve all documents: the release, medical records, bills, communications with the insurer, and any written offers or demands. These documents are essential to evaluate whether the release can be challenged.
- Talk to a lawyer immediately. A lawyer can assess whether viable grounds exist to attempt to set aside the release or to pursue other remedies.
When to involve Nevada state agencies
If you suspect the insurer acted unfairly or violated Nevada insurance statutes or regulations, you may file a complaint with the Nevada Division of Insurance. The Nevada Division of Insurance can provide consumer guidance and investigate insurer conduct: Nevada Division of Insurance (DOI).
Other timing considerations
Settlement decisions interact with legal deadlines. For example, personal injury lawsuits in Nevada are subject to statutes of limitation, and delaying evaluation of your legal rights can affect those timelines. If you are thinking about rejecting an insurer’s offer and possibly filing suit later, consult a lawyer promptly to preserve your rights.
Bottom line: A full-and-final settlement typically prevents later recovery for additional treatment. Don’t sign a release while treatment is incomplete. Ask the insurer for reserve language or a partial release, document your future medical needs, and get legal advice before accepting a full-and-final payment.
Disclaimer: This information is educational only and does not constitute legal advice. It is not a substitute for an attorney-client relationship. For advice tailored to your situation, consult a licensed Nevada attorney.
Helpful Hints
- Never sign a “final” release if you are still undergoing evaluation or treatment.
- Request written offers and keep a detailed record of all communications with the insurer and adjuster.
- Obtain a current written medical prognosis explaining likely future treatment and costs.
- Ask for a settlement that specifically reserves future medical care or limits the release to past medicals only.
- Consider negotiating a lien/assignment with your medical providers to protect them and reduce pressure to sign quickly.
- Consult a Nevada personal injury or insurance-claims attorney before signing any full release.
- If you believe an insurer acted unfairly, you can file a consumer complaint with the Nevada Division of Insurance: https://doi.nv.gov.
- For Nevada insurance law and unfair claim practices, review NRS Chapter 686A: https://www.leg.state.nv.us/NRS/NRS-686A.html.