Who is responsible for paying the attorney fees after a claim is settled and the employee is represented?

• A. Employee
• B. Employer
• C. Employee's attorney is paid out of award
• D. The insurance carrier

Answer: (D)

The correct answer reflects that in many cases, particularly in workers' compensation claims or similar legal contexts, the insurance carrier holds the responsibility for covering attorney fees after a claim has been settled. This often happens because the insurance carrier aims to ensure that legal costs are contained within the framework of the overall settlement agreement.

In practice, when an employee is represented by an attorney, the attorney generally negotiates their fees as part of the settlement terms. These fees are often taken out of the total award granted to the employee, effectively making it the responsibility of the insurance carrier to cover these costs, as they ultimately bear the financial responsibility for the claim. This arrangement can help ensure that the employee receives their entitled benefits while also allowing attorneys to be compensated for their work.

Understanding this dynamic is key, as it clarifies the role of the insurance carrier in managing claim settlements and the distribution of awarded funds, including legal fees.