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

Indemnity benefits in workers' compensation replace a portion of the worker's lost wages during periods of temporary or permanent disability.

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

Vocational rehabilitation funding helps an injured worker who cannot return to their prior occupation acquire new skills, and including it in a structured settlement can support long-term financial independence.

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

Second injury funds encourage employers to hire workers with pre-existing disabilities by reimbursing the employer or insurer for the portion of disability attributable to the prior condition.

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

PTD means the injured worker has a permanent condition that prevents them from performing any type of gainful work, typically resulting in lifetime indemnity benefits.

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

Under the Social Security offset rule, combined WC and SSDI benefits cannot exceed 80% of the worker's average current earnings, so WC structured payments can reduce the SSDI benefit.

Structured Settlements Practice Test

Structured Settlements Practice Test

Structured Settlements Workers' Compensation Structured Settlements 2