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Claim Disposition Agreement
Compromise and Release
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Oregon law an injured worker may settle a workers' compensation claim except for medical
benefits and eligibility for Preferred Worker status. Such a settlement is usually called
a "compromise and release" or "claim disposition." |
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Effects
of a claim disposition agreement
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In return for an agreed
upon amount of money, an injured worker may give up or "release" the right
to such things as:
- All rights under Chapter
656 other than those under ORS 656.245
- Claim closure and disability
rating
- Vocational assistance
benefits
- An award for permanent
partial disability
- Monthly payments for
permanent total disability
- Future time-loss benefits
- Aggravation rights
to reopen claim
- Survivor's Benefits
In fact, the only things the worker is not allowed to release are
rights to medical benefits and eligibility for Preferred Worker
status. If the disposition states the claim is "closed"
or the worker's condition is "medically stationary," further
medical treatment will be strictly limited.
If a permanent partial disability award has not been fully paid, the injured worker
could lose any unpaid award by signing a claim disposition agreement. To avoid this,
payment of the award can be included in the terms of the disposition, or the worker
can ask the insurer for a "lump sum" payment of the award prior to submission
of the disposition.
If a worker is disabled under social security, the amount of the claim disposition
may offset social security payments. Social security may not be paid until the offset
is complete.
Moneys payable from a claim disposition may also be subject to an order to enforce
child support obligations.
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Requirements
and restrictions
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The
disposition must identify accepted conditions and released benefits
The disposition must note the accepted medical conditions it is based
on, and exactly what benefits related to those conditions are being
released. This helps the worker compare the benefits normally paid
for those conditions with the dollar amount being offered.
The worker must be informed about the meaning of a disposition
An enclosure to accompany the proposed agreement has been prepared by the Workers' Compensation
Board to explain the basic meaning of claim disposition.
If the worker does not have an attorney, he or she has the right to personally meet and
discuss the proposed agreement with the Workers' Compensation Board. The worker may also
consult the Ombudsman for Injured Workers, whose job it is to help injured workers. There
are no fees or charges for these services.
The worker has the right to an attorney
The attorney may charge a fee if the disposition is approved by the Workers' Compensation
Board. The fee will be subtracted from the settlement. The worker also may have to pay
the attorney for money actually spent while working on the disposition, even if no agreement
is reached. |
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30
day "cooling off" period
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After the worker
signs the claim disposition agreement, it will be sent to the Workers' Compensation Board.
Once the Board has accepted it, they will hold it for 30 days. Unless the disposition
states otherwise, no benefits will be paid during this 30 day "cooling off"
period.
Within the 30 day period, the worker may write the Board and ask them to disapprove the
disposition. If the disposition is disapproved, the insurer must resume paying benefits
if they are due.
The Board will otherwise approve the disposition in 30 days unless the Board finds it
to be unreasonable or the result of misrepresentation. When approved, it becomes final.
The disposition cannot be appealed to any agency or court. |
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Payment
of claims disposition agreement
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of the disposition must be made no later than the 14th day after the
Board mails the agreement to the parties, unless otherwise stated
in the agreement. If payment is not made, the Benefit Consultation
Team or the Ombudsman for Injured Workers will help the injured worker
obtain payment. The Board cannot help the worker obtain payment of
the disposition. |
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For
more information contact:
Benefit
Consultation Team: 1-800-452-0288, 503-947-7585
Ombudsman for Injured Workers: 1-800-927-1271, 503-378-3351
Workers' Compensation Board Claims Disposition Agreement
Unit: 503-378-3308 |
