Detailed answer — what a full and final settlement does

When an insurance adjuster offers a “full and final” settlement and asks you to sign a release, the release is a contract that usually extinguishes all past and future claims arising from the incident described in the release. If you accept the offer and sign a properly worded release, you will normally be unable to reopen the same claim later for additional treatment or future damages related to that accident.

Why that matters

Many injuries continue to evolve. You may seem better at the time of settlement but later need more therapy, surgery, or long‑term care. If you have signed a full and final release, the insurer will generally not pay for those later expenses.

When a release might not be final

There are limited situations where a signed release can be set aside in South Dakota, for example if the release was procured by fraud, duress, mutual mistake, or clear misrepresentation about a material fact. Courts can also refuse to enforce releases that are unconscionable. These are narrow exceptions and are fact‑specific. Proving one of these defenses after you have signed and cashed a settlement is often difficult and uncertain.

Statute of limitations you should keep in mind

South Dakota law sets time limits for filing personal injury lawsuits. For bodily injury claims, the statute of limitations is generally three years. See SDCL § 15‑2‑14. If you delay and a signed release does not resolve your needs, the time limit could bar a later court action. Read the statute here: SDCL §15‑2‑14 (Actions for injury to the person).

Medical liens, third‑party bills, and subrogation

A full and final payment will not automatically satisfy every third‑party or provider claim against the settlement. Medical providers, health insurers (or Medicaid/Medicare), and other lienholders may have rights to some or all of settlement proceeds. You should confirm how medical bills and liens will be handled before accepting an offer.

Practical options if you still need treatment

• Don’t sign immediately. Ask for the insurer’s offer in writing and request time to complete reasonable treatment or obtain a medical prognosis.
• Get a treating physician’s opinion. Ask your doctor for a written statement about current status and the reasonable estimate of future care, costs, and prognosis.
• Negotiate a reservation or structured language. Try to negotiate either: (a) a smaller, partial release that preserves future claims for additional medical care, or (b) an allocation in the settlement that sets aside money specifically for future medical treatment (sometimes called a medical set‑aside or structured settlement).
• Consider a structured settlement or periodic payments. If future care is likely, periodic payments or a trust can help guarantee funds for future needs and address lienholder concerns.
• Resolve liens first. Ask how the insurer will handle medical lien claims, health subrogation, or Medicaid/Medicare reimbursement before you sign.
• Keep your file. Preserve all medical records, bills, and correspondence with the insurer. These documents matter if there is later dispute.

If you already signed — what now?

If you already signed a full and final release and need more care, options are limited but may include:

1. Review the release with an attorney to see whether its language actually released future claims or only certain claims.
2. Investigate whether a legal defense to enforcement exists (fraud, duress, mistake, or material misrepresentation). These defenses require strong proof and legal argument based on the facts.
3. Talk to your health insurer or medical providers about payment options or charity care if the settlement is unavailable for new treatment.
4. If you believe the insurer withheld material facts or misrepresented medical facts when obtaining your signature, consult an attorney promptly about rescinding the release or pursuing other remedies.

Timing is critical. If you believe you have strong grounds to challenge a release, seek counsel quickly because evidence and witness memories fade.

When to talk to an attorney

Consult an attorney before you sign any full and final release if you have ongoing treatment or uncertain future needs. An attorney can:

• Explain what the release language will waive.
• Negotiate reservation language, structured payments, or lien resolution.
• Estimate damages for future care so you can compare to the insurer’s offer.

If you’ve already signed, an attorney can evaluate whether the release is enforceable and whether any defenses or statutory relief may apply.

Helpful Hints

• Never sign a “full and final” release without medical clearance that your treatment is complete or without a clear written estimate of future medical needs.
• Ask for the insurer’s offer in writing and get time to consult your doctor and an attorney.
• Request that the insurer confirm in writing how it will allocate the settlement among medical bills, future care, lost wages, and pain and suffering.
• Confirm whether your health insurer or Medicare has repayment or subrogation rights and plan how those liens will be handled.
• If you sign, keep a copy of the signed release and any related correspondence. Do not cash a check until you understand the release language and lien issues.
• Keep an eye on the statute of limitations (generally three years for bodily injury in South Dakota). See SDCL §15‑2‑14: https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&Statute=15-2-14.