What are the main types of workers' comp settlements?
Answer
There are two primary types of workers’ compensation settlements: a Denial and Dismissal (D&D) and a Commutation, often referred to as a lump-sum settlement. Both are paid as a single lump sum, but they differ significantly. A D&D settlement provides money without acknowledging your entitlement to workers’ compensation benefits; instead, you sign an order stating you are not entitled to benefits, and your case is dismissed and denied. These settlements are usually lower in value because they typically involve cases with high risk or substantial issues—situations where you may otherwise receive nothing if a judge denies the claim. In contrast, a Commutation applies when your entitlement to benefits has already been established and you have been receiving weekly payments. This type of settlement ends your weekly checks and medical coverage in exchange for a lump sum, the amount of which depends on how long you would have continued receiving benefits. Because a Commutation permanently ends your benefits, it is essential to consider your long-term medical and financial needs carefully. Our workman’s compensation lawyers can help you evaluate which option best fits your situation, and you can learn more through our RI workers’ comp benefits. You may also want to explore related topics like lump-sum versus ongoing payments or downsides to taking a lump-sum settlement to better understand your choices.
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