What is the default method for settlement payments unless otherwise agreed?

• A. In a lump sum
• B. In installments over time
• C. Weekly benefits
• D. On demand

Answer: (A)

In Rhode Island workers’ compensation, the default settlement method is a lump-sum payment. When a claim is settled through a compromise and release, the typical arrangement is one final cash payment that settles all rights to compensation and medical benefits, unless the parties specifically agree to a different method. Installments or a structured settlement are possible only if both sides consent and any required approvals are obtained. Ongoing weekly benefits are payments for disability while the claim remains active, not the method of settling the case, and “on demand” isn’t a standard settlement method. The lump-sum approach provides closure and finality, which is why it is considered the default.