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Workers' comp settlement

You may have the option of negotiating a settlement on an accepted or denied claim. There are two types of settlements:

Disputed claim settlement (DCS)

What

A DCS is one way to resolve a dispute between the worker and the insurance company over the denial of a claim or condition. Under a DCS, the worker releases rights to all future benefits in exchange for a lump-sum settlement.

If a DCS occurs, the denial of the claim or condition becomes final.

When

After the insurance company denies a claim or condition, the worker and insurance company can settle at any time between the date of the denial and when it becomes final.

Claims disposition agreement (CDA)

What

The injured worker releases rights to all benefits except medical treatment and preferred worker benefits in exchange for a lump-sum settlement. Although some rights are relinquished, a CDA creates certainty for the injured worker.

When

A CDA can occur any time after a claim has been accepted. Workers who agree to a CDA but who do not have an attorney have a 30-day waiting period, also known as a "cooling-off period," to reconsider the agreement.

Notes