Building Code Administrators and Inspectors Florida Principle and Practice Licensure Practice Exam

An employer pays a lump sum payment to a claimant without an attorney releasing the employer from future liability. The employer has __________.

1. A. Broken the law.

2. B. 90 days to provide the claimant with an attorney.

3. C. To get permission from a judge.

4. D. 120 days to file a notice of denial.

The correct answer is: D. 120 days to file a notice of denial.

The correct answer pertains to the employer's obligation within a specified timeframe regarding future claims made by the claimant. When an employer makes a lump sum payment to a claimant, it effectively alters the relationship and responsibilities concerning compensation. In this scenario, the employer is typically required to notify relevant parties and file a notice of denial if they intend to contest the claim or assert that liability has been settled with the lump sum payment. The 120 days represents the legal window within which the employer must act to inform the claimant and file the necessary documentation to prevent any future ambiguity regarding liability. This ensures both the employer and claimant have clarity on the settlement and any claims that may arise after the payment is made. In contrast, the remaining options do not accurately reflect the procedure or responsibilities associated with the lump sum payment and future liability. The law does not stipulate that the employer has broken the law under these circumstances unless there are other contextual factors involved. Furthermore, there is no requirement to provide the claimant with an attorney within 90 days, nor does the employer need permission from a judge when making this lump-sum payment unless specific legal conditions dictate otherwise.