Structured Settlements Workers' Compensation Structured Settlements 3

Question 1

What is the primary regulatory body that must approve most workers' compensation structured settlements?

Accepted Answer

Workers' compensation judge or board in the applicable state

Answer

Most state WC systems require a judge or the WC board to approve settlement agreements, including structured ones, to ensure the settlement adequately compensates the worker.

Question 2

Can structured settlement payments from a workers' compensation claim be subject to SSPA transfer restrictions?

Accepted Answer

Yes — many state SSPAs apply to WC structured settlements, requiring court approval for any transfer to a factoring company

Answer

Many state SSPAs broadly define covered structured settlements to include WC periodic payment agreements, subjecting transfers to the same court approval requirements as tort structured settlements.

Question 3

What does 'temporary total disability' (TTD) mean in a workers' compensation claim?

Accepted Answer

A temporary condition in which the worker cannot perform any work while recovering from the injury

Answer

TTD benefits replace a portion of wages during the period the worker is completely unable to work due to the injury but is expected to eventually recover.

Question 4

What is 'subrogation' and how does it affect workers' compensation structured settlements?

Accepted Answer

The insurer's right to recover WC benefits paid from a responsible third party's settlement proceeds, which can reduce the net structured settlement amount available to the worker

Answer

When a third party (e.g., a negligent equipment manufacturer) is also responsible for the worker's injury, the WC insurer can assert a subrogation lien against any third-party recovery, reducing what remains for the structured settlement.

Question 5

What is 'apportionment' in a workers' compensation context involving a structured settlement?

Accepted Answer

The allocation of disability between a current work injury and a pre-existing condition or prior injury

Answer

Apportionment determines what portion of the worker's current disability is attributable to the new work injury versus prior conditions, affecting the amount the employer or insurer owes.

Structured Settlements Practice Test

Structured Settlements Practice Test

Structured Settlements Workers' Compensation Structured Settlements 3