Certified Disability Management Specialist (CDMS) Practice Exam

The most common option for the structured settlement of Workers' Compensation benefits is indeed the purchase of a fixed annuity. This approach provides a reliable stream of income over a specified period, which can be vital for injured workers who need to manage their recovery and financial stability following a work-related injury. When structured settlements are involved, they are designed to provide a long-term financial solution for the injured worker rather than a single immediate payment. The purchase of a fixed annuity allows for periodic payments that can cover ongoing medical expenses, lost wages, and other living costs, making it a prudent choice for ensuring that funds are available over time. Other options, such as a one-time lump sum payment, while sometimes available, may not provide the same level of long-term financial security and can lead to issues if the beneficiary mismanages the funds. Similarly, a salary increase would not fit the context of a structured settlement, as it does not address the compensation for the injury directly. Immediate payout of all benefits also lacks the structured approach needed to manage ongoing expenses effectively, which can leave the worker financially vulnerable as time passes.