What must occur for a Compromise and Release (C&R) to be valid?

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Prepare for the California Self‑Insurance Plans (SIP) Exam with our interactive quiz. Benefit from multiple-choice questions, detailed explanations, and essential tips to enhance your knowledge and succeed in your exam!

Multiple Choice

What must occur for a Compromise and Release (C&R) to be valid?

Explanation:
A Compromise and Release becomes binding only after approval by the Workers’ Compensation Appeals Board or a WCAB judge/referee. This approval ensures the settlement is fair, compliant with California law, and properly valued, protecting the employee and guaranteeing enforceability. Simply having a physician’s consent or an employer’s consent does not make the agreement binding, and while a judge’s signature is part of the process, the formal, binding approval comes from the appeals board or a WCAB referee. Once approved, the C&R resolves the claim under the agreed terms.

A Compromise and Release becomes binding only after approval by the Workers’ Compensation Appeals Board or a WCAB judge/referee. This approval ensures the settlement is fair, compliant with California law, and properly valued, protecting the employee and guaranteeing enforceability. Simply having a physician’s consent or an employer’s consent does not make the agreement binding, and while a judge’s signature is part of the process, the formal, binding approval comes from the appeals board or a WCAB referee. Once approved, the C&R resolves the claim under the agreed terms.

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