After Accepting a Florida Injury Settlement—When Do You Receive the Money?

What Happens After You Say Yes?

The parties should reduce the material settlement terms to writing. The insurer usually prepares a release identifying the parties and claims being resolved. Counsel reviews it, obtains required signatures and tax or payment information, and returns the completed documents.

A verbal understanding or an accepted number does not always mean every release term has been agreed. Questions about confidentiality, indemnity, property damage, liens, future claims, or who receives the check should be resolved before signing.

How Long Does the Insurer Have to Pay?

Florida Statute § 627.4265 generally requires an insurer to tender payment according to a written settlement agreement no later than 20 days after the settlement is reached. Payment may be conditioned on an agreeable executed release. The parties can also agree to another payment date. The statute provides interest consequences for untimely tender, subject to its terms.

That deadline concerns the insurer’s tender. It does not necessarily mean the client receives a cleared net check on the same day.

Why Does the Check Go Through a Trust Account?

Settlement funds payable through counsel are deposited into the lawyer’s trust account. The bank must make the funds collected, not merely show a provisional balance. The firm then prepares a written closing statement and pays or reserves valid obligations before distributing the undisputed client balance.

What Can Delay Final Distribution?

• A release that still needs correction or signatures
• A check naming the wrong payee or requiring an endorsement
• Bank collection and clearance
• Medicare or Medicaid final-demand procedures
• Health-plan, workers’ compensation, or provider reimbursement claims
• Minor settlement, probate, guardianship, or court approval
• Negotiation of medical balances or a genuine dispute over a deduction

Can Part of the Money Be Released First?

Sometimes an undisputed portion can be distributed while a specific amount remains in trust for an unresolved lien or bill. Whether that is safe depends on the settlement terms, trust-account rules, the claimed right, and whether enough money remains protected. A lawyer should not distribute funds that another person has a valid interest in merely because the client requests immediate payment.

What Should the Client Receive?

• A copy of the executed settlement agreement or release
• A closing or disbursement statement listing the gross recovery
• Separate entries for attorney fees and case costs
• An explanation of bills, liens, reimbursements, and holdbacks
• The net amount paid to the client and copies of important payoff documents