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- Purpose and Scope. This Chapter provides an introduction to settlements and commutations under the LHWCA and its extensions. Chapter 3-501 pertains to settlements under section 8(i) of the LHWCA. Chapter 3-502 covers commutations under section 9(g) of the LHWCA and section 2(b) of the DBA.
- Policy. It is our policy to neither encourage nor discourage agreed settlements. It is the responsibility of the DD to insure that applications are complete, adequate, not procured by duress, and timely processed.
- Section 8(i) Settlements.
- Settlement applications may be submitted solely for compensation, solely for medical benefits or for compensation and medical benefits combined.
- Settlement may be considered for any claim under the Act, including survivor benefits.
- Settlements may be "structured" so that payments will extend over the lifetime of the claimant with an annuity policy used to provide continuing payments.
- Commutations Pursuant to LHWCA Section 9(g).
- Commutations are limited to death benefits for aliens or non-nationals of the United States, in the amount of 1/2 of the commuted future installments.
- An informal conference or formal hearing is not required to authorize a lump sum payment.
- A compensation order fixing the right of the beneficiary to compensation is required pursuant to section 702.142(d) of the regulations.
- All commutation calculations are made by the National Office.
- Commutation, pursuant to section 9(g), is mandatory upon request by the EC.
- Commutations Pursuant to DBA Section 2(b).
- Commutations may be considered for permanent total disability, permanent partial disability under section 8(c)(21), or death of aliens or non-nationals of the United States. Payment is for 1/2 of the commuted amount of future installments.
- Payment of a lump sum does not release the EC of the responsibility to furnish future medical care.
- An informal conference or formal hearing is not required to authorize a lump sum payment.
- All commutation calculations are made by the National Office.
- Commutation, pursuant to DBA section 2(b), is mandatory upon request by the EC.
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