Is Signing a Release for Settlement with the Insurance Company a Good Idea?

Figuring out whether or not signing a release for settlement from the insurance company is a good idea can be a complex answer. By signing the release for settlement form, you are accepting the settlement offer and the insurance company has to make payment within 30 days. It’s important to remember that signing the form waives your rights to all future claims related to the accident or injury, so the insurance company will have no further liability.

Depending on your personal injury case, signing the release for settlement could be a good thing if it means you are happy with the settlement amount and are ready to conclude your case. On the other hand, if you haven’t had an experienced personal injury lawyer negotiating on your behalf, or are unhappy with the personal injury settlement offer, signing the release agreement means you can’t take further legal action and you may risk missing out on getting full and fair compensation to cover medical expenses and other losses.

Is Signing a Release a Good Idea?

What Is a Release of Claim Form, and What Does It Do?

A settlement release of claim form is a legal document outlining the terms of your settlement agreement with an insurance company. It is part of the settlement process and typically includes:

• details about your bodily injury claim,
• the agreed-upon amount for damages from the accident like your medical bills and lost wages,
• a clause releasing all claims against the responsible party and their insurance company in exchange for the settlement amount.

When There Might Not Be an Insurance Release Form

In some cases, the insurance company may not need you to sign a release before making a payment. For instance, a claim with your own insurer may not require a release of claims form. However, when receiving money for an accident from an insurance company, you will likely need to sign a release of claims.

Do I Have to Sign Release Forms Before I Get My Settlement Check?

In most cases, you’ll need to sign an insurance company release form before receiving your settlement check. Under Illinois Law 735 ILCS 5/2-2301, known as the Prompt Pay Statute, a release form must be provided to the plaintiff within 14 days of written settlement confirmation. Payment must then be made to the injured party within 30 days of signing the release.

When Should I Sign a Release of Claim Form?

There are many situations where signing a release of claim form and accepting the insurance company’s offer makes sense.

When There Is No Injury Claim

If you’ve been in a car accident without injuries, signing a property damage release as soon as possible will help you get your car fixed quickly. If you find the settlement offer fair, signing a release of claim form can streamline the repair process.

When There Is an Injury Claim

Before signing a release of claims form for a personal injury claim, it’s important to consult an experienced personal injury attorney. An experienced attorney can assess your case to protect your rights to seek additional compensation for medical treatment. Once you agree that the insurance settlement terms are fair and cover your expenses, you can sign the form and receive your settlement check. Call today for a free consultation.

When Should I NOT Sign an Insurance Release Form?

In many personal injury cases, it’s crucial to have the insurance release form reviewed by personal injury attorneys before you sign. If you’ve been seriously injured, consult a personal injury lawyer before signing anything. Ensure that all necessary provisions are included in the release form and that you understand the implications of signing it.

What If I Get an Offer By Phone?

If an insurance adjuster calls, they may sound sympathetic and present an appealing offer. This can be as binding as a contract, and accepting a few thousand dollars plus medical bills for three months could lead to trouble if your injuries linger. What seemed like a minor injury might become serious, so consulting a lawyer is essential to ensure you receive fair compensation.

What Happens If I Sign a Release of Claim Form and My Injuries Get Worse?

Unfortunately, seeking compensation from an insurance company after signing a release of claim form is difficult. For example, if you were rear-ended and weren’t too worried about a sore neck, you might want to repair your car quickly. To do this, you’ll likely need to sign an insurance release form.

Read the release carefully and ensure you’re only signing for property damage. This is a legally binding document, and if it states that you waive all future claims, you won’t be able to seek further compensation if your sore neck turns out to be the first sign of a spine injury requiring further treatment.

Signed Releases Are Strictly Enforced in Illinois

In Illinois, signed releases for accident claims are strictly enforced and can only be undone in rare cases, such as a significant disparity in settlement amounts or if a person with disabilities was misled and did not fully understand the agreement.