Can an insurance company put a lien on my settlement award?

Answer by  Jimbob (2275)

If the insurance company has a court order to collect on your property then they can put a lein on your settlement. But if there is no legal reason that the insurance company would have for your settlement then there is no reason they would be able to put a lien against you money.

Answer by  Duncan (1124)

Liens can generally be placed on any assets of the debtor, though this can vary depending on the jurisdiction. Getting a lien usually involves a court process.

Answer by  mb (5482)

Usually a lein against your settlement award is to pay for the insurance companies expenses in filing and or disputing your claim. You probably signed an agreement to this without realizing it. Call your claims adjuster to argue this. You may be able to renegotiate the settlement of your award or your lein amount.

Answer by  John (9008)

Not only can they do so, it is common practice. Written into almost every insurance policy is language explaining that if they pay for treatment for an injury, and you later sue for damages because of that injury, they have the right to recover what they spent for your treatment.

Answer by  patti (29325)

A settlement award is made by the court or between the representatives of the negotiating parties. A lien is a judgment granted by a court to a creditor. Unless your insurance company is a creditor and has filed for a judgment against you, they cannot withhold your settlement.