Expert: Richard Hixenbaugh - 8/20/2011

Question
Dear Richard,

I reached an agreed on a settlement with auto insurance company for a body injury claim after being rear ended. My car has already been repaired by the insurance company.

The insurance agent sent me a "Release of All Claims" letter to sign and send back before they send the payment check. The first sentence in the letter says "In consideration of the sum of xxx, receipt whereof is hereby acknowledged, I do hereby release ....."

I have no problem signing the letter but I am concerned about signing it and then waiting forever for the check. It has already taken 9 months to reach an agreed on figure which is nothing to speak of.

Should I sign the letter in advance or can I request that the insurance company just endorse the check as full and final settlement. Is is possible that an escrow company can handle the transaction?

Answer
Hi Akex,

This is the usual procedure. It is ok to sign the release form. Once the insurance company signes the release form they will send you the check within a couple of days. Just go ahead and sign it and everything will be just fine.

I hope this helps
Richard Hixenbaugh