In cases with clients under the age of 18, some insurance companies require court approval of a child’s settlement to make sure that it is in the best interest of the child. A guardian ad litem is appointed by the court to review the case and the settlement to make a recommendation for approval to the judge.
Afterwards, the money is placed in the court registry or in an annuity to gain interest until the minor turns 18. This is also to protect the child from having their settlement money spent by somebody else.