How long does it take to get paid after a wrongful death settlement?

The insurance code is clear that an insurance provider has to satisfy a wrongful death claim after it’s been settled immediately, no more than 30 days. California has regulations on fair settlement practices and how claims should be handled. The one specifically on point says that once the case has been settled, the insurance company shall fund that settlement immediately no more than 30 days after the settlement.  

While that’s the insurance companies obligation, there are unfortunately some circumstances that can be delayed a bit, and you should be aware of that as well. For example, when a case is settled, and there were Medi-Cal/Medicare type liens, Veterans Association liens, some of those liens may take longer than 30 days to become finalized. As a result, settlement can be delayed during that time period. Most of those are usually resolved prior to the settlement or resolved within 60 days of the settlement itself. 

Another challenge with respect to the timing of the funds can have to do with who brought the action of the wrongful death. If the individuals brought the action and the settlement breaks down how the individuals are going to be paid out of that settlement, then it’s fairly straightforward. If, instead, the estate representative brought the action in a probate matter, then what happens, unfortunately, is the settlement proceeds go into the probate estate. Then the probate estate has to be administered, and that could sometimes take months or, unfortunately, even years. The good news is that it probably happens in less than 10% of the wrongful death actions.