Common use of Finalization Clause in Contracts

Finalization. (1) State Fund will review and evaluate claims for settlement, complete a "Proposed Finalization for State Cases" form, and submit the form to the RTWC with supporting documentation as requested by the Department. State Fund shall not enter into a Stipulation with Request for Award (Stip) or Compromise and Release (C&R) on a claim without obtaining prior approval from the RTWC or other appropriate Department Representative, unless the settlement falls within pre- authorized settlement authority established pursuant to Sections E(3) through E(5) below. If the settlement falls within Sections E(4) through E(5), State Fund will not be required to submit a "Proposed Finalization for State Cases" form with supporting documentation unless the pre-authorization for settlement authority contains this requirement. (2) Departments will provide an appropriate reply in writing to State Fund's request for authority. If authority is not granted, the Department must include an explanation as to why. (3) If authority is not granted, the RTWC or another Department Representative who has the authority to authorize settlement must personally appear at the MSC or Trial. Failure to appear shall constitute authorization to stipulate to the Disability Evaluation Unit (DEU) rating. (4) Individual Departments may establish pre-approved settlement authority for State Fund by mutual agreement on specific parameters with State Fund. Any such agreements must be made in writing and a copy sent to CalHR prior to taking effect. While this settlement authority does not require written approval by CalHR pursuant to Section 5.3(A), CalHR may terminate or amend any such agreement at any time if CalHR determines that such agreement is not in the best interest of the State. (5) CalHR may elect to establish pre-approved settlement authority for State Fund by mutual agreement with State Fund on specific parameters, on behalf of itself and the Departments, by providing the specific parameters to State Fund in writing.