When we (an insurance company) pay a settlement to an individual and his attorney, should the 1099 be sent to the attorney for the full amount? Is it the attorney's responsiblity to send their client a 1099?

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That is incorrect. When paying the settlement to the attorney, you must issue a 1099 to the attorney (reporting the gross proceeds in box 14), and issue a separate 1099 to the claimant, who is the beneficial owner of the award. See Instructions for Form 1099-MISC, page 2, and U.S. Code Sections 6041 (claimant) and 6045(f) (attorney).

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