While this is not common, some insurance companies offer plaintiffs (people in the other cars who potentially will be suing them) money, usually something nominal, to resolve a case shortly after an accident. Before they are going to pay the money, they want the plaintiff to sign a “release.” The important thing to remember with a release is that this document marks the end of the case. Thus, if you have any injury that is worth 10, 20 or 100 times or more than what they are offering, you cannot get the money later, as your case was released. I have seen some cases where the client was offered a sum of money that was less than what they owed in medical bills! But it does not matter (unless there are certain rare exceptions that make the release agreement unlawful) as generally if someone voluntarily signs a release in exchange for money, the case is over. If the plaintiff were to sue them, the insurance company would present the release to the judge and seek the case to be dismissed based on accord and satisfaction, specifically that the plaintiff released defendant from the lawsuit.
