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What is the name of your state? Tx

I am new to the board and am seeking advice regarding a settlement. AIG insurance sent me a " Release of All Claims" letter as the final part of a agreed upon settlement for an auto accident that occurred October of 2000. The letter stated that in consideration of the settlement offer, I agree to discharge any future claims agaist the driver of the other vehicle and AIG. I agreed, signed and had the letter notarized, and returned it certified mail. Three days later I recieve a call from the adjuster and he tells me that he made a mistake, he was not aware that AIG had already paid one of my medical bills when my health insurance company filed a claim. Therfore, he was reducing the settlement by $3600 and had already mailed me a check for the adjusted amount.
The last paragraph of the settlement letter reads, This release contains the ENTIRE AGREEMENT between the parties hereto, and the terms of this release are contractual and not a mere recital."
Is the settlement letter I had notorized a binding contractual ageement? If so, any suggestion on how to proceed! Thanks in advance for any comments or suggestions.



Well hopefully you didn't cash that reduced check AIG sent you,eh? If you did cash it or deposit it, *I believe* that means you have accepted the terms of the "deal."

If you still have a check, I would proceed to see an attorney to get those questions answered. Usually the attorney provides a free consultation, so you might want to "interview" several. Make sure this is a trial attorney specializing in personal injury and not just a settlement attorney. You may need the trial expertise if the other side doesn't cooperate.

Or you might first try calling the adjuster back and telling him that what you signed was for the full amount agreed upon. They can't reduce the amount after the fact, they can't change the terms of the settlement amount *after* you have agreed to that amount. You can tell him you want the full amount stated and that he can call that part of the money [additional] "pain and suffering" but in any case, you want the full amount agreed upon. It's worth a try!

Course, sometimes I get ambitious with my *advice* so if this is not your style or doesn't feel right, go see an attorney pronto!


Senior Member
My question to you is, why should the insurance company pay you for a claim that has already been paid? The release prevents you from suing the other party and the insurance company. If you were overpaid, you could bet your sweet bippy they will sue you for a refund. Plus you get to pay the lawyer fees and court costs. You have no legal claim to the money and the adjuster was correct in what he did.


ProResearch(Diane) - Thanks for the informative response. I did not cash the check and have no intention to. I did consult with an attorney this morning and he advised me that the release was contractual and AIG was responsible for the agreed upon settlement. I attempted to contact the adjuster, but no response as of yet. Great advice wbout getting a attorney with trail experience just in case it comes down to it. Once again thanks.

Racer72 - The settlement we agreed upon was not to cover medical expenses. It was for pain, suffering, scarring, and future residuals. I am entitled to the agreed upon amount. If they had offered the reduce amount to begin with, I would never have signed the release.

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