Current through Reg. 49, No. 38; September 20, 2024
(a) Upon the request of the eligible
beneficiaries, the insurance carrier and eligible beneficiaries entitled to
death benefits may agree to change the frequency of death benefits payments
from the standard weekly period to a monthly period. The agreement to change
the payment frequency must be in writing. To relieve the insurance carrier of
the responsibility to pay death benefits weekly:
(1) An application to change the frequency of
payments must be submitted to the Commission with the written agreement for
approval in the form, format and manner required by the Commission
(2) A separate application must be submitted
to the Commission for each eligible beneficiary, and the application must state
that a payment adjustment shall be made when there is a change in the
individual beneficiary's eligibility status in accordance with the provisions
of the Act.
(3) If less than the
maximum weekly death benefit in effect at the time of death is being paid, a
completed Employer's Wage Statement (Form TWCC-3) must be filed with the
application to change the payment period.
(4) The written agreement for monthly payment
of death benefits must include:
(A) the
agreement for the monthly payment of death benefits will be effective the first
calendar day of the month following the month in which the written agreement
was approved by the Commission;
(B)
payment of monthly death benefits shall be issued on or before the seventh day
of the month for which benefits are due.
(C) continuation of weekly death benefits
payments through the end of the month in which the agreement was
approved;
(D) payment of the last
week of death benefits to transition from weekly payment of death benefits to
monthly payments shall be prorated to the end of the month to ensure the
eligible beneficiaries receives death benefits through the last day of the
month; and
(E) calculation of the
monthly compensation rate by multiplying the weekly compensation rate by
4.34821.
(5) The
Commission must approve the application to change the frequency of death
benefit payments.
(b)
With the exception of payments made by annuity under subsection (d)(7) of this
section, at any time after signing the agreement for the monthly payment of
death benefits, the eligible beneficiary or insurance carrier may notify the
other party in writing that it no longer agrees to the monthly payment of death
benefits. The last monthly payment shall be prorated to ensure the insurance
carrier pays the appropriate amount of DBs. In this case, the insurance carrier
shall pay all accrued but unpaid death benefits at the end of the current
monthly cycle and shall continue to pay death benefits weekly as and when they
accrue and are due.
(c) The
insurance carrier and an eligible beneficiary may enter into a written
agreement that the carrier shall purchase an annuity for that beneficiary for
weekly or monthly payment of death benefits. An application for payment of
death benefits by annuity must be submitted to the Commission for approval in
the form, format and manner required by the Commission. If less than the
maximum weekly death benefit in effect at the time of death is being paid, a
completed Employer's Wage Statement (Form TWCC-3) must be filed with the
application for payment by annuity.
(d) An annuity for the payment of death
benefits shall meet the following terms and conditions.
(1) Monthly death benefit payments shall be
initiated no later than the 45th day after the date on in which the written
agreement was approved by the Commission.
(2) The company providing an annuity for the
payment of death benefits must be licensed to do business in Texas and must
have a current A. M. Best rating of B+ or better or have a Standard &
Poor's rating of claims paying ability of A or better.
(3) The workers' compensation insurance
carrier must guarantee the payments provided by the annuity company in the
event of default.
(4) When benefits
are paid to an eligible spouse of the deceased employee and the spouse
subsequently remarries, the annuity contract must address the payment of a lump
sum payment equal to 104 weeks of benefits to the eligible spouse and the
redistribution of benefits at the end of 104 weeks to the remaining eligible
beneficiaries, if any.
(5) If all
beneficiaries become ineligible to receive death benefits and an amount equal
to 364 weeks of death benefits has not been paid, the remaining benefits shall
be paid by the annuity company without an order from the Commission to the
Subsequent Injury Fund not later than 30 days after all beneficiaries'
eligibility ends.
(6) A
beneficiary, or the beneficiary's guardian if applicable, shall not be allowed
to assign the right to receive death benefits from an annuity. All death
benefits must be paid to the order of the eligible beneficiary or the legal
guardian, if applicable.
(7) The
annuity company shall pay death benefits either weekly or monthly as elected by
the beneficiary in the application for payment of death benefits by
annuity.
(8) If monthly payments
are elected by the beneficiary, the transition from weekly to monthly benefits
paid by annuity shall be the same as that for death benefits paid by the
responsible insurance carrier set out in subsection (a) of this
section.
(e) This
section applies only to agreements entered into on or after January 1, 2000,
for payment of death benefits under the provisions of the Act.
