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.



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