If a settlement is reached, either through negotiation or prelitigation mediation, the insurance company will send a check for you. They will also send a legal document called a release for you (and if necessary, your spouse) to sign. By signing the release, you discharge the insurance company and the party who is liable for your injuries of any further obligations or payments related to the injuries and damages from the accident. You must sign this release in order to collect the settlement.

Your lawyer should have a trust account, which holds money that has been entrusted to him but belongs to clients. Once the settlement funds clear through this trust account, your lawyer will prepare a settlement statement or closing statement for your signature. This is another legal document, which sets forth the total amount of the settlement and any deductions for lawyers’ fees and costs, or any medical bills or liens that are to be paid from the settlement. You will have the opportunity to review this statement, and your signature will authorize the law firm to give you your settlement funds. Once you receive the proceeds from the settlement, your case is successfully concluded. For more on settling and closing your case, please see Chapter Six.