Detailed answer — what a “full and final” settlement does and why it matters

When an insurance adjuster offers a “full and final” settlement, they are asking you to accept a single payment in exchange for signing a release that typically closes the claim and prevents you from pursuing any further money for the same injury. In most cases, once you sign a broad release that settles “all claims” arising from the accident, you give up the right to seek more money later for additional medical treatment or other damages related to that incident.

Before you sign: protect your right to needed future care

• Get a current, written medical prognosis from your treating provider that estimates current damages and any likely future treatment (types of treatment and a cost range).
• Do not sign a final release if your doctors say you may need more care. Ask the adjuster to reserve funds for future treatment or to delay settlement until you reach maximum medical improvement (MMI).
• Consider negotiating one of these options instead of a full immediate release:
  • Structured settlement (payments over time) with a portion earmarked for future medical bills.
  • A partial release that allocates a specific amount for future medicals or leaves medical claims open.
  • An escrow or holdback: a sum placed in escrow to pay for future, documented treatment.
• Make sure any settlement expressly identifies and accounts for medical liens and subrogation claims (e.g., health insurer, Medicare, Medicaid). If liens exist, the gross settlement amount must be sufficient to resolve them and still compensate you.
• Ask for the release language in advance and have a lawyer review it. Small changes in wording can make a release narrow (limited to current bills) or broad (all future claims).

If you already signed a broad “full and final” release

Signing a broadly worded, full-and-final release generally extinguishes the legal claim for further compensation arising from that incident. Your practical and legal options are limited but can include:

• Review the release carefully with an attorney to confirm its exact scope. Some releases are narrower than they look.
• If the insurer obtained the release through fraud, misrepresentation, coercion, or by materially misstating facts about your medical condition or the settlement, you may have grounds to rescind or set aside the release. Proving fraud or duress is often difficult and fact-specific.
• If the release contains a mutual mistake (both sides misunderstood a fundamental fact) or the settlement neglected to address known, material future medical needs, a court in some circumstances may reform or set aside the agreement — but this is uncommon and litigated.
• If the release covered only a particular defendant or policy and a different liable party exists, you might still have claims against that other party. The exact outcome depends on the release wording.

Timing: statute of limitations and why delay matters

Under New York law, the general statute of limitations for personal injury actions is three years from the date of the accident. See New York Civil Practice Law & Rules (CPLR) § 214: https://www.nysenate.gov/legislation/laws/CVP/214. Even if you haven’t reached that deadline, signing a release can waive your right to proceed. Do not assume you can “wait and sue later” after signing a full release.

Medicare, Medicaid and medical liens

If you received medical care paid for by Medicare, Medicaid, or a private health insurer, those payors may have subrogation or lien rights against your settlement. You must make sure those liens are satisfied from the settlement proceeds. Failing to address liens can cause later demands against you or your settlement funds.

Practical examples — hypothetical facts

Example 1 — You have ongoing symptoms but insurer offers $8,000 as “full and final.” Your surgeon says you may need a $40,000 surgery. Signing a full release for $8,000 would likely prevent you from obtaining additional compensation later. Better approaches: delay the release until after definitive diagnosis/treatment or negotiate a holdback for future care.

Example 2 — Your claim is for minor bruising and MRI shows no structural damage. A medical provider gives a clear statement that no further treatment is expected. A modest full-and-final settlement may be reasonable if your medical records and prognosis support it.

How courts treat releases in New York

In New York, releases are contracts. Courts generally enforce clear and unambiguous releases that were entered voluntarily. Courts will scrutinize releases when a party shows fraud, duress, mistake, or that the insurer actively concealed material medical information. Because outcomes depend on the specific language and facts, consulting a lawyer before signing is important.

Next steps to protect yourself

1. Obtain a current medical prognosis and an estimate of future treatment costs.
2. Ask the insurer to postpone final payment or to set aside money for future care if future treatment is likely.
3. Get the proposed release language in writing and have a lawyer review it before you sign.
4. If you already signed and now need more care, contact an attorney immediately to evaluate whether the release can be challenged or whether any other legal paths remain.

Relevant New York resource: New York Civil Practice Law & Rules (CPLR) § 214 (statute of limitations for personal injury): https://www.nysenate.gov/legislation/laws/CVP/214. For consumer insurance guidance, see the New York State Department of Financial Services (Insurance) consumer pages: https://www.dfs.ny.gov/consumers.

Disclaimer: This information is educational only and not legal advice. Laws change and every case is different. Consult a licensed New York attorney before signing any release or settlement agreement.

Helpful Hints — quick checklist before accepting a “full and final” offer

• Get a written medical prognosis and future-cost estimate from your treating physician.
• Don’t sign anything on the spot. Ask for the release language in writing and take time to review it.
• Ask the insurer to reserve money for future medicals, use an escrow, or offer a structured settlement if future care is likely.
• Confirm and resolve any liens (Medicare, Medicaid, private insurers) before distributing settlement money.
• Watch the wording: “full and final release of all claims” is broad; “release as to past medical expenses only” is narrower. Clarify ambiguous terms in writing.
• If you’re a minor or legally incapacitated, court approval may be required to settle a personal injury claim — consult counsel.
• Keep copies of all medical records, bills, and communications with the insurer and adjuster.
• If you signed a release but believe it was obtained by fraud or mistake, talk to an attorney immediately — timing and evidence are critical.

If you want, I can outline a short checklist of documents to bring to a lawyer or help draft questions to ask an adjuster before you respond to a settlement offer.