Point systems assign values to injury severity, age, exposure duration, and other factors, then distribute the fund in proportion to each claimant's total points. It is a variation on tiered settlement structures.
Points determine share rather than fixed amounts.
Alternative Names:
Points Matrix, Point-Based Allocation
Why it Matters?
Proportional allocation means the fund is fully distributed regardless of how many claimants qualify, which protects the defendant against a larger than expected qualifying population. That is the structural advantage over fixed tier values, where an underestimated population produces either a shortfall or additional funding. The tradeoff is that individual claimants cannot know their recovery until the full claimant pool is determined.
Frequently Confused with
Related terms
Frequently asked questions
What is the advantage over fixed tier values?
What is the tradeoff?
