Detailed answer
If an insurance adjuster offers a “full and final” settlement while you still need medical treatment, signing that release usually ends your legal right to seek more money later for medical care, lost wages, pain and suffering, or other losses tied to this injury. In plain terms, a full-and-final release typically extinguishes your claim for future care and prevents reopening the case—even if your condition worsens.
Under Rhode Island law, the ordinary statute of limitations for personal-injury claims is three years from the date of injury. See R.I. Gen. Laws § 9-1-14 for the time limit on bringing a civil action: https://www.rilegislature.gov/Statutes/TITLE9/Pages/9-1-14.aspx. A signed release can cut off your ability to sue well before that statutory deadline by settling your claim now. Because a release is a legally binding contract, courts generally enforce clear release language that resolves all known and unknown claims.
Key legal and practical effects:
- Waiver of future claims: A properly worded full-and-final release typically waives both present and future claims related to the incident.
- Finality: The insurer expects that payment closes the file. That is usually the insurer’s goal when offering a “full and final” amount.
- Medical bills and liens: Health insurers, hospitals, and government payers (Medicare/Medicaid) may have reimbursement or lien interests. A settlement may not automatically resolve those obligations; you must confirm payor interests and account for them in the settlement.
- Medicare/Medicaid conditional payments: If Medicare or Medicaid paid for care, you must address their conditional payment or risk future recovery actions by the government.
- Statute of limitations: Even if the limitations period has not run, the release can bar future suit if it covers those claims.
Because releases and settlement documents vary widely, their exact effect depends on the written language. Some releases are narrowly drafted to cover only specific bills or past treatment; others are broad and waive “all claims” arising from the event.
Common scenarios and consequences
Example (hypothetical): you suffer a car crash injury, receive $5,000 in treatment so far, and the adjuster offers $10,000 as a “full and final” settlement. If you accept and sign a general release, then later need surgery costing $50,000, you will likely be unable to demand more money from that insurer because you gave up your future claims.
When you might safely settle before completing treatment
There are limited situations where settling early may make sense:
- You have a clear medical prognosis showing no significant future care is needed.
- You negotiate a settlement that specifically preserves rights for future medical costs in writing (rare).
- You accept a partial release allocating specific amounts to medical bills and reserving for future care (structured or segmented settlement).
Even in those cases, you should get medical confirmation of Maximum Medical Improvement (MMI) or a written breakdown of expected future costs before agreeing to a final release.
What the adjuster might propose instead of a full-and-final release
- Advance or interim payment for past medical bills without release of future claims.
- Partial release that allocates payment toward specific past medical bills or wage loss only.
- Structured settlement that pays future medical or wage needs over time.
Practical steps to protect yourself
- Do not sign anything immediately. Ask the adjuster for the settlement offer in writing and request the exact release language they want you to sign.
- Ask your treating physician whether you have reached MMI or whether additional treatment is likely. Get that in writing.
- Get a full medical cost estimate for anticipated future care from your provider.
- Demand clearance of liens and conditional-payment obligations. Contact payors (private insurer, Medicare/Medicaid) and request payoff figures so you know how settlement proceeds will be divided.
- Consider negotiating a release that is limited to past medical bills and wage loss, reserving future care, or insisting on a structured settlement for future needs.
- Have a qualified attorney review any offer and release language before you sign. Attorneys can help with lien resolution, Medicare conditional payments, and drafting reservation language or re-opener clauses.
- Keep records: medical notes, billing statements, correspondence with the insurer, and any settlement draft language.
If you already signed
If you already signed a clear full-and-final release, undoing it is difficult. Courts generally enforce valid releases, except in limited circumstances such as fraud, duress, incapacity, mutual mistake, or lack of consideration. If you believe the release was procured by fraud or misrepresentation, contact a lawyer promptly. Also check for specific carve-outs in the release (for example, some releases exclude certain pending claims or explicitly preserve workers’ compensation subrogation rights).
Who to contact for help in Rhode Island
Rhode Island’s Department of Business Regulation oversees insurance consumer protection and may provide guidance on insurer practices: https://dbr.ri.gov/divisions/insurance. For civil-time limits on suing after an injury, see the Rhode Island General Laws § 9-1-14: https://www.rilegislature.gov/Statutes/TITLE9/Pages/9-1-14.aspx. If government health programs (Medicare/Medicaid) paid any bills, contact those payors about conditional payments before finalizing a release.
Bottom line: A full-and-final settlement ends most claims tied to the event. If you still need treatment, do not sign a broad release without a careful medical and legal review. Consider delaying settlement until you reach MMI or obtain written protections for future care.
Helpful Hints
- Never sign a full-and-final release on the spot. Request the language and time to review.
- Get a medical opinion on whether more treatment is likely and what it may cost.
- Ask the insurer for a breakdown: how much goes to medical bills, attorney fees, and net recovery.
- Search for potential liens (health insurers, ER/hospital, Medicare) before settlement.
- If Medicare/Medicaid paid, get a conditional payment statement and resolve it before closing.
- Consider a limited or segmented release that closes only some claims and reserves others.
- Talk to an attorney experienced in Rhode Island personal-injury settlements to draft or review release language and handle lien obligations.
Disclaimer: This information is educational only and not legal advice. It does not create an attorney–client relationship. For advice tailored to your situation, consult a licensed attorney in Rhode Island.