What type of agreement is a Stipulation and Order (Stip)?

A Stipulation and Order, commonly referred to as a Stip, is indeed an agreement to rescind the denial and accept the claim. This type of agreement is important in the claims process as it signifies that both parties—the claimant and the insurer—have come to a mutual understanding regarding the acceptance of a claim that was previously denied. By entering into a Stipulation and Order, the insurance company commits to acknowledging the validity of the claim, which facilitates the resolution of the dispute without further legal action.

The Stip serves to streamline the process, ensuring that the claimant receives the benefits and compensation they are entitled to, while also resolving any uncertainties or disputes that may have arisen regarding the claim's validity. This is especially beneficial in situations where evidence or circumstances have changed post-denial, leading to a re-evaluation of the initial decision.

Contextually, agreements that recoup costs, commitments to appeal a denial, or requests for claim review do not align with the primary function of a Stipulation and Order. While each of those options deals with various aspects of the claims process, they do not encapsulate the essence of what a Stip accomplishes—namely, the acceptance of a claim that was previously in dispute and a pathway forward