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How Long Does it Take to Receive Settlement Money From a Lawsuit in Maryland?

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How Soon Can the Settlement Process Begin?

According to the Maryland legislature, once a claim has been submitted, an insurance company legally cannot initiate any settlement negotiations within 15 days of the incident. Any correspondence during these 15 days should be limited to the company acknowledging the claim and providing appropriate documents, such as proof of loss forms.

What Might Delay the Payment Process During a Settlement?

Settling during a lawsuit can be overwhelmingly beneficial to the grieved party. It can alleviate the burden of court and attorney fees and other expenses associated with litigation. However, there are a number of common factors that affect how quickly compensation may be received.

Slow Processing From the Insurance Company

The processing of the settlement release form will typically take about six weeks. However, if this does not occur promptly, the grieved party may be waiting for months. This can happen for a variety of reasons, such as company workload or sickness.

Bad Faith Conduct

When an insurance company unreasonably delays a settlement or offers low amounts, this is considered bad faith practice. There are several courses of action available when dealing with a company thought to be acting in bad faith. One option is to file a complaint with Maryland’s Insurance Administration, hopefully resulting in the investigation of the company before legal action becomes necessary. Another option is to file a lawsuit against the insurance company. A successful lawsuit could recover additional punitive damages on behalf of the grieved party.

Currently Receiving Treatment

If the grieved party is forced to undergo extensive or prolonged treatment due to sustained injuries, a settlement will be delayed. One of the main goals of a settlement is to cover all expenses incurred as a result of the injury, and this may only be possible once the treatment has concluded and an accurate amount can be determined.

Natural Disasters

Natural disasters will often cause insurance companies to become inundated with claims. This additional workload may cause a delay in claim approval.


Once an insurance company issues a settlement check, any liens placed against the settlement must be deducted before the distribution of funds. An attorney may be able to negotiate with creditors to avoid substantial liens. Additionally, attorney fees and other costs are taken from the settlement amount. Any deductions or negotiations occurring after the settlement check has been written will further delay payment to the awarded party.

How Soon Will I Be Paid Following a Deposition?

The deposition process consists of both sides being questioned by opposing counsel. After a deposition, both sides must review the transcripts to ensure that they are both accurate and complete. This process could result in the need for further investigation and will delay the settlement process.

Can a Settlement Be Rescinded in Maryland?

Settlement contracts function like any other legal contract and are binding once both parties have accepted the terms and reached an agreement. This agreement typically requires a payment from the insurance company in exchange for being released from legal liability. An offer may be declined or countered by either party. However, once a company makes an offer, it typically will not retract it.

The State of Maryland allows victims the right to cancel a settlement offer that was previously accepted if it is canceled within 60 days of signing the release. This is available if the release was signed within 30 days and without the guidance of an attorney. This also makes it possible to cancel a settlement by informing the insurance company in writing of the intention to cancel an offer and returning any checks that were received as a result of signing the release. The settlement agreement will be considered revoked as soon as the cancellation notice and repayment are sent.

What are the Different Types of Payout Options?

Maryland offers several options for settlement payouts. Those options are:

  • Lump sum payout: This is a single and immediate payment. These payments are generally worth less than longer, structured settlements.
  • Structured settlements: Payments made in installments over a period of time, typically on a monthly or annual basis. This results in smaller amounts being distributed instead of the entire amount at once.

What Types of Compensation are Available?

The amount awarded during settlements varies greatly depending on the circumstances of each case. The goal for compensation is that the amount rewarded is proportionate to the loss and suffering of the injured party. Types of compensation rewarded might include:

  • Damages for emotional trauma
  • Reimbursement for medical expenses
  • Compensation for wrongful death
  • Reimbursement for lost personal property resulting from an injury

What are Events That May Lead to a Settlement?

  • Motor vehicle accidents
  • Assault, theft, and other acts of violence
  • Animal attacks and bites
  • Medical malpractice
  • Slip and falls
  • Injuries from defective or malfunctioning products
  • Recreational accidents
  • Work-related accidents or injuries

Do I Need an Attorney?

If you are struggling to receive money that you are rightfully owed or are unsure of what steps to follow to ensure your settlement is successful, we are here to help. Call Tehrani Law, LLC today at 301-973-6510 or fill out a contact form for a free consultation.

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