1

Compromise and Release

The first way to settle a worker's compensation claim in California is via Compromise and Release. When an injured worker settles his/her claim via Compromise and Release he/she is settling out their entire claim. The insurance company will not be responsible for paying the injured worker's medical costs, nor will they be responsible for any other disability payments. The injured worker will receive a lump sum payment, which will include an estimate of what future medical costs may be minus any permanent disability benefits that have already been paid.

2

Stipulation With Request for Award

The second way for an injured worker to settle his/her worker's compensation claim is via Stipulation with Request for Award. Settling a claim via Stipulation leaves the injured worker's future medical open, meaning that the insurance company will be responsible for paying for medical treatment for the body parts that are included in the settlement for the remainder of the applicant's life. In addition to the future medical care the applicant will receive permanent disability payments every two weeks, until they have been paid the monetary value of their permanent disability.