If a settlement agreement has been signed by both parties and approved by a judge, then it is legally binding and enforceable. However, after a case has been dismissed, the court no longer has the power to enforce a settlement agreement. A settlement agreement works when the parties reach an agreement on the resolution of the case. The parties agree on what exactly the outcome will be.
They put the agreement in writing and both parties sign it. So, the settlement agreement has the same effect as if the jury decided the case with that outcome. The parties then execute the judgment following the terms of the agreement, including payment. Once you sign a settlement offer, it's highly unlikely that you'll be able to withdraw.
Settlement offers often contain clauses that exempt insurance companies from any future liability for the accident in question. If you get information that changes your mind about the agreement, it may not change if the agreement is valid. Courts can overturn settlement agreements that were reached through misrepresentation, fraud, or unfair terms. However, if a proper agreement was drafted, the agreement can be carried out under the code of a state.
This means that if you withdraw from a legitimate agreement, you may be subject to damages if the final judgment was not in your favor.