Worker’s Compromise in Personal Injury - Quiz

Worker's Compromise in Personal Injury

• A worker's compromise is an agreement to resolve a worker's compensation claim.

Types of Settlements

• A lump-sum settlement involves a one-time payment to the worker.
• A structured settlement involves regular payments to the worker over a period of time.

Advantages of Lump-Sum Settlements

• The main advantage of a lump-sum settlement for workers is immediate access to funds.

Importance of Legal Counsel

• It is important for workers to seek legal counsel before agreeing to a settlement to ensure they fully understand the terms.

Validation of Settlement Agreements

• A settlement agreement must be approved by a worker's compensation judge to become valid.

Consequences of Accepting a Settlement

• When a worker accepts a settlement, they typically waive future claims related to the injury.

Taxability of Settlements

• Compensation for lost wages received as part of a settlement may be taxable.

Considering Future Medical Costs

• Future medical costs should be considered when negotiating a settlement to ensure adequate long-term coverage.

Benefits for Employers and Insurers

• A common benefit for employers and insurers in settling a worker's compensation claim is the avoidance of future litigation.

Approval of Settlements

• A worker's compensation judge considers the fairness of the settlement terms when approving a settlement.