Detailed Answer — What typically happens after the insurer issues the check

Once an insurance company issues a settlement check in Illinois, the method and timing of how you actually receive the money depend on several factors: who the insurer makes the check payable to, whether you have retained an attorney, outstanding liens or subrogation interests (medical providers, Medicare/Medicaid, or health insurers), and whether the attorney or claimant must clear the funds through a lawyer trust account.

1) Who the check is payable to

• Payable to you only: If the insurer issues the check solely in your name and you have not signed a representation or assignment, the insurer expects you to endorse and deposit it. If you later retain an attorney after cashing the check, it may complicate fee claims or releases you signed.
• Payable to you and your attorney (jointly): Insurers often issue checks payable to both the claimant and the attorney when the insurer has been notified of representation. Joint-payee checks generally must be deposited to the attorney’s client trust account (IOLTA or similar) and disbursed after clearing.
• Payable to your attorney only: This sometimes occurs if you signed a settlement release that directs payment to the law firm. The firm must handle those funds under Illinois rules for safekeeping client property and must account to you.

2) Attorney trust accounts and disbursement rules

Illinois lawyers are required to keep client funds separate from firm operating funds and to follow the Illinois Rules of Professional Conduct on safekeeping client property (practices are enforced by the Illinois courts and the Attorney Registration & Disciplinary Commission). In practice:

• When a settlement check arrives that names the attorney and client, the law firm deposits it into the firm’s client trust account. This is done even if the attorney will receive a fee portion.
• The attorney uses the trust account to pay outstanding liens, hospital or provider bills, medical record retrieval fees, case costs, and agreed attorney fees.
• After completing required payoffs and obtaining any necessary lien releases, the attorney prepares a written, itemized settlement statement showing gross recovery, attorney fees, expenses, lien payoffs, and net amount to you.
• The attorney issues your net recovery by check or electronic transfer to you once the bank clears the deposit and all payoffs are completed. Banks often require the deposited check to clear (which can take several business days) before disbursing funds from the trust account for client distribution.

3) Liens, subrogation, and government health programs

If medical providers, health insurers, or government programs (like Medicare or Medicaid) have paid medical care related to your claim, they may have subrogation or repayment rights. In Illinois that process is common and typically handled before the attorney releases funds to you. That can require negotiating payoffs or obtaining conditional payment letters, and in some cases a court approval or settlement escrow may be used.

4) Timing — how long until you get paid?

Timing varies but typical steps add days to weeks to the process:

• Insurer issues check: mailed or sent to attorney (same day to 1–2 weeks depending on insurer methods).
• Deposit and bank clearance: trust account deposit clears (commonly 2–7 business days; longer for large amounts or out-of-state banks).
• Payoffs and lien resolution: can be same day after funds clear or take longer if lienholders need to negotiate.
• Final disbursement: once the firm completes accounting and payoffs, you typically receive a check or electronic transfer. Expect at least several business days from receipt of the insurer check; complex cases take longer.

5) If you don’t have an attorney

If you have not retained counsel, the insurer may mail the check directly to you. Before you sign any release or cash the check, carefully read the release terms and understand whether cashing the check waives future claims. If the check is payable jointly to you and another party (for example, a hospital lienholder or a health plan), you may need to coordinate endorsements or obtain a release.

6) Types of disbursement to expect

• Paper check from your attorney or the law firm trust account (common).
• Wire transfer or direct deposit if the attorney offers electronic transfer and you provide account details (may carry fees or require written authorization).
• Third-party payoff checks sent directly to lienholders, with the remainder sent to you.

7) Documentation you should receive

When funds are disbursed you should receive an itemized settlement statement or closing statement that includes:

• Gross settlement amount
• Attorney fees and how they were calculated (percent or fee agreement reference)
• Case costs and expenses deducted
• Payments to lienholders or other third parties
• Net amount paid to you and the method of payment

8) What to do if you have problems or delays

• Ask your attorney for a written settlement accounting and an explanation of any delay.
• Request proof of payoff to medical providers or government programs if you suspect funds were not handled properly.
• If you believe an Illinois attorney mishandled your funds, you can contact the Attorney Registration & Disciplinary Commission (ARDC) or the Illinois courts for guidance on filing a complaint.

For general information on Illinois courts and the rules governing attorneys, see the Illinois Courts website: https://www.illinoiscourts.gov/

Helpful Hints — Practical steps to make sure you receive your settlement funds smoothly

1. Before settlement, confirm with your attorney who the insurer will send the check to and how the firm will disburse funds.
2. Do not sign a release or cash a settlement check until you fully understand the release language and any outstanding liens.
3. Ask the attorney for an approximate timeline and a written itemized settlement statement as soon as the check is received.
4. Provide your attorney with lien and health-insurance information early so payoffs can be arranged quickly.
5. If you prefer electronic payment, ask if the firm offers secure wire or ACH transfers and what information and authorizations are required.
6. Keep copies of the settlement paperwork, the final accounting, and all correspondence about payoffs and releases.
7. If Medicare or Medicaid may have paid for care, tell your attorney immediately so they can address federal reporting and conditional payment issues.
8. If the check is payable to you and your attorney, expect the money to pass through the attorney’s trust account before you receive your net share.

Remember: this information explains common Illinois practice but is not a substitute for legal advice. If you have specific concerns about how your settlement check is handled, talk to your attorney or consult a licensed Illinois lawyer before endorsing or cashing any settlement check.