Workers' Compensation Structured Settlements Flashcards
6 cards from real Structured Settlements practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Workers' Compensation Structured Settlements flashcards as text
What is 'indemnity' in a workers' compensation context?
Answer: Wage replacement payments made to an injured worker who cannot work due to the work-related injury
Indemnity benefits in workers' compensation replace a portion of the worker's lost wages during periods of temporary or permanent disability.
What is 'vocational rehabilitation' and why might it be included in a workers' comp structured settlement?
Answer: Services that help an injured worker retrain for a new occupation, sometimes funded within the settlement to promote return to employment
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.
What is the 'second injury fund' in workers' compensation?
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
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.
What does 'permanent total disability' (PTD) mean in workers' compensation?
Answer: A permanent condition in which the worker is completely unable to engage in any gainful employment
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.
How does the structuring of workers' comp indemnity payments affect the claimant's Social Security Disability Insurance (SSDI) benefits?
Answer: Workers' comp payments, including structured ones, can reduce SSDI benefits under the workers' compensation offset provision until the claimant reaches retirement age
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.
What is a 'compromise and release' (C&R) settlement in workers' compensation?
Answer: A final settlement agreement in which the worker accepts a lump sum (or structured payments) in exchange for releasing all future WC claims
A C&R is a final settlement that closes out all aspects of the WC claim — indemnity and medical — in exchange for an agreed amount, which can be structured as periodic payments.