This is so sad.  No amount of money can compensate for the loss of a child.

Agree with Susan.  You should also review details of the settlement to determine the nature as there may be certain component(s) that would be subject to tax (e.g. lost wages).

Whether a 1099 was issued is not relevant.  Your client should probably follow-up with the insurance company just to make sure the numbers jive.  Any income, documented or not, legal or illegal, must be reported unless specifically exempt... Think Al Capone.