What term describes a mutually agreed-upon resolution to conclude a workers' compensation claim?

The term that describes a mutually agreed-upon resolution to conclude a workers' compensation claim is “Settlement.” In the context of workers' compensation, a settlement is an agreement between the injured worker and the employer or their insurance company around the compensation for the work-related injury or illness.

Settlements are significant because they provide both parties with closure, allowing the injured worker to receive a lump sum payment or structured benefits in exchange for waiving further claims related to that injury. This agreement generally prevents future disputes regarding the same claim and can be beneficial in terms of reducing litigation costs and the time associated with ongoing claims assessments.

The other terms mentioned refer to different processes within the workers' compensation system. Claim adjudication involves the evaluation of a claim to determine its validity and the benefits owed, while arbitration is a more formal dispute resolution process where an impartial third party makes a binding decision. An appeal, on the other hand, is a process where a party seeks to overturn a decision made by a workers' compensation board or judge. Each of these concepts plays a role in the broader context of workers' compensation but does not specifically describe a mutually agreed resolution like a settlement does.