Detailed Answer

When an insurance company issues a settlement check in Maine, the path that check takes to you depends on several factors: whether you have an attorney, who the insurer names on the check, existing medical or other liens, and whether a court must approve the settlement (for example, for minors or certain guardianship situations). Below are the common scenarios and the typical steps that follow.

Common payment scenarios

• Insurer names you (the claimant) alone: The check is payable directly to you. You can deposit or cash it, subject to any endorsements or liens the insurer or third parties require.
• Insurer issues a joint check to you and your attorney: The check will be payable to both you and your lawyer (for example, “John Doe and Law Firm, LLC”). Most attorneys will ask you to sign so they can endorse and deposit the check into the firm’s client trust account.
• Insurer issues the check to you and one or more lienholders: Medical providers or insurers who claim a lien may be named on the check. You usually must arrange for those liens to be paid before you receive the net proceeds.
• Insurer pays directly to lienholders: Occasionally the insurer pays medical providers, subrogated insurers, or a mortgage/loan holder directly from the settlement proceeds.

If you have an attorney

Most plaintiffs hire attorneys to negotiate and close a settlement. Attorneys in Maine typically handle settlement checks this way:

1. The insurer issues the check to the client and the attorney (joint payees) or to the client alone, depending on their practice.
2. The attorney deposits the check into the firm’s client trust account (IOLTA or similar) as required by professional rules.
3. The attorney pays approved expenses, negotiated liens, and the attorney fee from the trust account.
4. The attorney issues a settlement statement (itemizing fees, costs, and lien payments) and sends the remaining funds to you by check, wire, or other agreed method.

Ask your attorney for a clear, written settlement statement and for copies of paid lien receipts. This helps you confirm what was deducted and why.

If you do not have an attorney

If you represent yourself, the insurer may mail the check directly to you. Before you deposit it, confirm whether any liens or subrogation claims exist (health insurers, Medicare, private health plans, or other creditors). Those parties may demand payment from your settlement. You may need to escrow funds or arrange direct payments to lienholders to avoid personal liability.

Liens, subrogation, and third-party claims

Common deductions from a settlement include:

• Medical provider bills and provider liens;
• Health insurer subrogation or reimbursement claims (including Medicare or MaineCare rights to repayment when applicable);
• Liens for outstanding loans on damaged property; and
• Attorney fees and case-related costs.

If MaineCare (State Medicaid) or Medicare may have a claim to part of a settlement, you or your attorney should contact the relevant agency to identify and resolve repayment obligations. For general information about insurance claims in Maine, see the Maine Bureau of Insurance: https://www.maine.gov/pfr/insurance/. For MaineCare information, see: https://www.maine.gov/dhhs/mainecare/.

Special situations that affect how you receive funds

• Minors: Courts often must approve settlements for minors. The court may require funds to be placed in a blocked or restricted account or paid to a court-appointed guardian.
• Incapacity or guardianship: A guardian or conservator may need court authority to accept and manage settlement funds for an incapacitated person.
• Joint ownership or property liens: If settlement proceeds relate to jointly owned property or there are outstanding mortgages/loans, lenders may need to be paid directly.

Typical timeline

After the insurer issues the check:

1. Delivery of the check to the named payee(s): days to one week by mail; same day if hand-delivered.
2. Endorsement and deposit into a trust/account: usually within a few business days after receipt.
3. Clearing and distribution to pay lienholders and you: could take a week or several weeks depending on lien resolution and check clearing.

Complex liens, third-party negotiations, or required court approval can add more time.

How funds are delivered to you

You may receive your net settlement by:

• Personal or certified check;
• Bank wire or electronic transfer (if your attorney or the payer offers that option);
• Deposit to a client account, followed by withdrawal; or
• Restricted/blocked account for minors or as ordered by a court.

What you should ask and get in writing

• Who is named on the check and why?
• When will the check be sent and to whom?
• A written settlement statement showing gross settlement, attorney fees, costs, and all deductions.
• Copies of receipts or canceled checks showing lienholders were paid.
• The method and timing of the final payment to you (check, wire, etc.).

Helpful Hints

• Do not cash or deposit a settlement check until you understand who must be paid from it.
• Get a written, itemized settlement statement from your attorney or the insurer.
• If Medicare or MaineCare might have a claim, contact the agency early to determine repayment obligations. (See MaineCare: https://www.maine.gov/dhhs/mainecare/.)
• If a medical provider claims a lien, ask for a written, itemized statement and proof of the lien’s legal basis before paying.
• Request copies of all paid-lien receipts and a final accounting before you accept the net proceeds.
• If you are unsure about lien validity or the settlement accounting, consult a Maine attorney experienced in personal injury or insurance matters before you sign or cash the check.
• For general consumer questions about insurance claims and practices in Maine, consult the Maine Bureau of Insurance: https://www.maine.gov/pfr/insurance/.