Legal Question in Insurance Law in North Carolina

Re: Insurance settlement for minors in NC.

That's a very complicated question. There are no "hard and fast" rules for what we call "Minor's settlements." As a general rule, the insurance company does not have any final protection unless the Court approves of the settlement, through some sort of "minor's settlement proceeding." They do not, however, always go through this procedure, depending primarily on the value of the claim. The insurance company will "prefer" to either pay the money to a Clerk of Court, or to fund an "annuity," but there are situations where they might pay the parent directly. You cannot, however, force or impose this on them. Further, the Court could allow you to invest the funds, but they are very cautious about this. You may want to consult an attorney if you want to pursue this further, and if the insurance company will not issue the funds in the manner you want. Finally, as a word to the wise, although I trust your investment knowledge, there are no (or few) "sure things," as many of us have seen recently in the stock market; the interest of your child might dictate that the money be invested prudently, and cautiously, and a Court (if the matter ever gets there) is likely to take the same approach. Good Luck.