Expert: Rob Painter, Ase, CFEI, CAFATE - 2/4/2009

Question
Dear Expert,

My husband and I were injured in a car accident. It was the other driver fault. His insurance company wants to settle the claim. We are ready to settle. However, we would like to know if it is an usual procedure to sign the release before to receive the check. They are asking to do that, first sign the injury claim release then receive a check. Many thanks for your help.

Answer
Hi lalica,

I am not an attorney and cannot give leagal advice, however I will address this on a personal level because I have been involved with insurance claims for over 20 years.
You did not state if you had an attorney involved. As much as I don't always care for attorneys, it is a well known fact that you can recieve more money having one represent your interests.

I do not commonly see the release being signed before the check. My concern is that you have not stated how long it has been since the accident occured and what type of medical care was provided.
The insurance company may want you to settle now, but what if you have more injuries than you think at this time?

I will give you a quick example as to what happened to me. I was rear ended while stopped at a stop light at the end of an expressway ramp. The accident reconstructioonist estimated the school bus impacted my van at 55-65 mph.
I ended up with 9 herniated discs in my spine. One of those injuries in my neck was inoperable, in which the disc to this day is pushing on my spinal chord. I also require both knees to be operated on.
Over the years, I have developed severe arthritis, and have been diagnosed with fibro because of all of this.

Now, it took 5 years to settle this and unfortunately, I had a great case with some hicups. These being one of my experts (An orthapedic) lost his medical license due to drug use. My other expert the chiropractor went to prison for tax evasion. I must have a cloud over my head attracting goofs like this as experts.

By the time of settlement, I knew what my injuries were with the prognosis. By the time we settled, and with seeing how this case was going to be portrayed in court, I had my lawyer take the offer. I had no choice.
Once settled of which I was not aware of, it was demanded that I pay back $40,000 to my health insurance company for covering the medical bills, leaving me with very little and my life shattered.
I blame this event on the State of Wisconsin for letting a convicted felon drive a school bus. Had he never worked for the school bus company, I would not be in the physical shape I am in today.

I am now on social security disability and am very limited on what I can do physically.

The only reason I tell you all of this is, you need to look into the future. The money might look real good to you right now, but you need top remember, you are now damaged goods and anything that ever happens to you in the future will be considered pre-existing.

Some people seek immediate cash awards not looking into the future.

Personally, I would not sign the release and at least consult with an attorney first to see if the settlement is fair. If you sign the release, you are possibly creating a problem for yourself in the future, because this takes the insuranmce company off the hook.

Also check if you have to pay your health insurance company for doctor's bills.

Check with an attorney.

Good luck,

Rob