A letter of protection is a letter sent by your attorney to the doctor or hospital that indicates your attorney is trying to win a claim or lawsuit for you, and that your attorney will pay the doctor’s bills out of the settlement money before giving any money to you if the doctor agrees to provide treatment and/or hold off on collections until after the case is over. In other words, when you settle your claim, the money is sent to the attorney, who puts it in his or her bank trust account and distributes it from there.
Why You Might Need a Letter of Protection in Oklahoma
Sometimes people who are injured by the fault of others do not have health insurance or the resources to pay their medical bills while they are being treated for their injuries. Furthermore, most of the time, the other driver’s insurance company will not pay claimants’ medical bills as they are accrued. They are usually required to make only one settlement, for one amount, at the end of the claim and in exchange for a full release of the defendant.
Insurance companies do not typically make settlement payments in increments. As such, if an injured person does not have insurance of his or her own to pay medical bills as treatment is received, and cannot afford to pay for the treatment out of pocket, it can be a major, unfair hardship to an injured person.
In order to help these people, some doctors or hospitals will agree to provide ongoing treatment and/or hold off on collection of previous bills in exchange for a “letter of protection” (called by other names, such as “lien letters”). In most cases, the doctor will be more comfortable if the attorney pays rather than you getting all of the money and paying the doctor yourself. Therefore, the attorney is making an agreement with the doctor that he or she will pay your medical bills from the settlement money before distributing any money to you.
Two Important Things About Letters of Protection
There are two very important things to keep in mind. First, the attorney is not agreeing to pay your medical bills personally. Rather, he or she is only agreeing that the doctor will get paid before you get paid if the case results in the receipt of money. Second, the doctor is not agreeing to your medical bills if you lose. If the case closes and you get nothing, then the letter of protection is cancelled and you then owe the doctor the full amount of your bill. In some regard, then, by asking your attorney to provide a letter of protection for continuing treatment, you are gambling that you will win the money to pay for treatment. Of course, whether you ultimately win or not, your health and well being should always be your primary concern.
Free Case Evaluation: Oklahoma City Car Accident Attorney
If you’ve been injured in a car accident, then it’s time you speak with an Oklahoma City Attorney who knows how to tackle these types of incidents in a timely, respectful, yet aggressive manner to protect your interests. It’s as easy as reaching out to one of our lawyers at Oklahoma City Personal Injury Law Firm, simply call (405) 395-2900.
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