Current through Register Vol. 48, No. 9, September 27, 2024
A. The
employer's representative shall pay, in lump sum, a settlement or award which
is less than one hundred weeks. When a settlement or award is more than one
hundred weeks, the Hearing Commissioner may order a lump sum payment or the
claimant may request a lump sum payment by filing a Form 24, Application for
Lump Sum Payment.
B. If the
claimant is not represented by an attorney, the claimant may request lump sum
payment by filing a Form 24 with the Commission's Claims Department. The
department will contact the employer's representative to inquire if it consents
to payment in lump sum.
C. An
attorney for the claimant must request the employer's consent to payment in
lump sum payment prior to filing a Form 24.
(1) If the parties agree to payment in lump
sum, the claimant's attorney may file with the Claims Department a Form 24 and
attach to the Form 24 a signed agreement for payment in lump sum.
(2) If the employer's representative does not
consent to payment in lump sum, the claimant's attorney may file a Form 24 with
the Claims Department and attach a letter stating that the insurance carrier
does not consent to the lump sum payment.
(3) The Commission will automatically set a
hearing. The parties will be notified according to R.67-607.
D. If the employer's
representative consents to payment by lump sum, the Claims Department forwards
the Form 24 to the original Hearing Commissioner who reviews the Form 24 and
may approve the Form 24 without the appearance of the parties.
(1) If the Commissioner approves the Form 24,
he or she signs the Form 24 and the Claims Department commutes the award or
settlement to present day value as provided in E below.
(2) The employer's representative is notified
of the amount of the lump sum payment.
(3) If the Commissioner does not approve the
Form 24, a hearing will be set automatically and the parties notified according
to R.67-607.
E. Unless a
Commissioner orders otherwise, or unless the settlement or award is less than
ten weeks, the insurance carrier receives a discount for payment in lump sum.
(1) To determine the discount, the Commission
subtracts the number of weeks already paid from the total number of weeks as
awarded.
(2) Weeks that have
accrued but are not paid at the time of the commutation are not included in the
calculation.
(3) Three weeks of
compensation are accrued into the future to allow for processing the Form 24
and issuing the check to the claimant.
(4) The number of accrued weeks are deducted
from the total number of weeks due the claimant, resulting in the number of
weeks commuted.
(5) The present
worth of the remaining weeks is determined according to the discount tables
designated by the Commission.
(a) A table
based on a discount of two percent per annum on each installment yet to mature
is used for less than one hundred weeks.
(b) A table based on a discount of five
percent per annum on each installment yet to mature is used for more than one
hundred weeks.
(6)
Multiplying the present worth of the weeks by the claimant's compensation rate
results in the commuted value of the remaining weeks.
(7) Adding the value of the accrued weeks to
the commuted value of the remaining weeks results in the total amount due the
claimant.
F. The dollar
value of a lump sum payment may be requested by writing the Claims
Department.
