Structured Settlements Workers' Compensation Structured Settlements 2

Question 1

What is 'indemnity' in a workers' compensation context?

Accepted Answer

Wage replacement payments made to an injured worker who cannot work due to the work-related injury

Answer

Medical expense reimbursement

Answer

A lump-sum payment for permanent disfigurement

Answer

The insurer's right to sue a negligent third party

Question 2

What is 'vocational rehabilitation' and why might it be included in a workers' comp structured settlement?

Accepted Answer

Services that help an injured worker retrain for a new occupation, sometimes funded within the settlement to promote return to employment

Answer

A type of therapy for psychological injuries

Answer

A legal process to challenge a workers' comp denial

Answer

An annuity product designed for injured workers

Question 3

What is the 'second injury fund' in workers' compensation?

Accepted Answer

A state fund that reimburses employers or insurers when a worker's prior disability combines with a new injury to cause a greater total disability than the new injury alone would have

Answer

A federal fund that reimburses employers for catastrophic claims

Answer

A supplemental annuity for workers who suffer a second on-the-job injury

Answer

A savings fund maintained by the employer for self-insured WC claims

Question 4

What does 'permanent total disability' (PTD) mean in workers' compensation?

Accepted Answer

A permanent condition in which the worker is completely unable to engage in any gainful employment

Answer

A temporary condition that may improve with treatment

Answer

A disability lasting more than 30 days

Answer

A disability affecting only one body part

Question 5

How does the structuring of workers' comp indemnity payments affect the claimant's Social Security Disability Insurance (SSDI) benefits?

Accepted Answer

Workers' comp payments, including structured ones, can reduce SSDI benefits under the workers' compensation offset provision until the claimant reaches retirement age

Answer

Workers' comp structured payments have no effect on SSDI

Answer

Structured WC payments permanently eliminate SSDI eligibility

Answer

SSDI benefits automatically increase when WC structured payments begin

Question 6

What is a 'compromise and release' (C&R) settlement in workers' compensation?

Accepted Answer

A final settlement agreement in which the worker accepts a lump sum (or structured payments) in exchange for releasing all future WC claims

Answer

A court order compelling the employer to pay WC benefits

Answer

A regulatory requirement for employers to post WC insurance

Answer

A release of the insurer from annuity obligations