Legal Question in Legal Ethics in Indiana

Insurance settlement checks

For over nine months, my attorney says he has been holding an insurance settlement check pending resolution of a state of Indiana lien against the settlement. Is it proper to hold settlements and not at least collect a nominal interest payment during this period. I realize that all parties involved would have to consent, but what is the advantage to literally ''hiding the money under the mattress''.


Asked on 2/02/01, 6:43 am

1 Answer from Attorneys
Charles Aspinwall Charles S. Aspinwall, J.D., LLC

Re: Insurance settlement checks

Settlement funds which will be escrowed or held for a protracted period are usually deposited in an interest-bearing account. Division of the interest is usually done on the same basis as the final distribution of the funds. To fail to collect interest on any monies other than insignificant sums is bad business at best and could be negligence at worst.

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Answered on 3/19/01, 9:22 am


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