A compromise and release settles the claim for a lump sum, generally closing both indemnity and future medical benefits. It requires approval by the administrative agency or judge to ensure adequacy.
Stipulated awards are the alternative structure, resolving disability while leaving medical benefits open.
Alternative Names:
C&R, Full and Final Settlement
Why it Matters?
Closing future medical is what makes a C&R valuable to carriers, since open medical exposure on a serious claim can persist for decades and is difficult to reserve accurately. It also triggers Medicare set-aside analysis where the claimant is a beneficiary or reasonably expected to become one, which frequently determines the funding required and can delay closure substantially if addressed late.
Frequently Confused with
Related terms
Frequently asked questions
What is the difference between a C&R and a stipulated award?
When is a Medicare set-aside required?
