Auto Injury Case - How are the lawyer fee & medical bills paid?

by Kim
(Wasilla, Alaska, USA)

Car accident 11/09 - I hired an attorney, who I have never met and only had dealings with the paralegal.

The case has been settled. However, the attorney shows that the proceeds were the check received from the insurance companies and also the amount used from my insurance company for medical bills. Is this correct? I feel the proceeds are only the check from my insurance and the other insurance company.

Also, the attorney has shown that they are to receive 40% of the above stated monies. Once they have received their payment, then the remaining balance on the medical bills are paid. Isn't this considered double dipping?

In my opinion, it should be as follows....

Insurance check #1 + Insurance check #2.
Remaining balance on medical bills should be paid.
Attorney fee of 40% to be calculated from the remaining balance.

What is the correct method? Please help. Thank you.