If an out-of-court settlement is reached between Plaintiff-to-be, can the defendant's insurance carrier pay the settlement amount to Plainti...

Question

If an out-of-court settlement is reached between Plaintiff-to-be, can the defendant's insurance carrier pay the settlement amount to Plaintiff's family member's name, rather than to Plaintiff's name, as long as Plaintiff requested/consented to it? ...or does the check have to be made out to Plaintiff's name?

Answer

As long as there is agreement, payment can be made to anyone. Doing that may cause serious complications and unintended consequences, tax issues among them, but there is no legal reason a claimant cannot settle their claim in exchange for payment to someone else.