Which event is commonly associated with closing a workers' compensation claim through settlement?

• A. A court-approved settlement or agreement
• B. Employer termination of coverage
• C. Employee moving out of state
• D. Medical records deleting after 3 years

Answer: (A)

In workers’ compensation, closing a claim through a settlement most often happens when the parties reach an agreement on the compensation terms and a court approves that agreement. This court approval helps ensure the settlement is fair, fully considers medical and wage issues, and protects the employee’s rights, effectively resolving all claims related to the incident. The other options don’t typically close a claim through settlement: ending coverage ends the policy, not the claim itself; moving out of state doesn’t finalize liability; and deleting medical records doesn’t affect the settlement or the claim’s status and is governed by privacy rules.