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What does signing a Release of All Claims constitute?

Colorado Springs, CO |

My daughter was in an accident. The ins co has paid most of the medical bills and now sent a Release of All Claims form:

"For and in consideration of delivery of a draft or check to the undersigned in the sum of $XXX, the receipt of which is hereby acknowledged, the undersigned hereby releases and forever discharges ...."

The figure is very close to the amount the ins co paid for the medical bills. Does "the receipt of which is hereby acknowledged" mean that I release them from any other claims because they paid the med bills, or are they saying they will actually send a check to me for this amount?


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Attorney answers 2


Doing this without a lawyer is not very wise. The release means that they get away with paying only your medical bills UNLESS the release states it is for personal injury. The release means you give up all legal rights to sue. I doubt you will get a check, but you will get her medical bills TO DATE paid, and after that you are on your own. Confer with a CO personal injury lawyer before you do anything else.
Mr. Sarno is licensed to practice law in NJ and NY. His response here is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Sarno strongly advises the questioner to confer with an attorney in their own state to acquire more information.


When you are signing a release and you do not have your own lawyer, you are almost certainly getting snookered.

Especially with banks and insurance companies.

My standard disclaimer: I am not offering legal advice, assume I do
not know the law in your state or at all for that matter and that I am
just making suggestions for starting points for when you do speak with
an attorney. Do NOT rely on anything I write and contact a lawyer in
your area immediately after reading my posting.

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