(a) When the parties to a claim for compensation, including survivor
benefits and medical benefits, agree to a settlement they shall submit a
complete application to the adjudicator. The application shall contain
all the information outlined in Sec. 702.242 and shall be sent by
certified mail, return receipt requested or submitted in person, or by
any other delivery service with proof of delivery to the adjudicator.
Failure to submit a complete application shall toll the thirty day
period mentioned in section 8(i) of the Act, 33 U.S.C. 908(i), until a
complete application is received.
(b) The adjudicator shall consider the settlement application within
thirty days and either approve or disapprove the application. The
liability of an employer/insurance carrier is not discharged until the
settlement is specifically approved by a compensation order issued by
the adjudicator. However, if the parties are represented by counsel, the
settlement shall be deemed approved unless specifically disapproved
within thirty days after receipt of a complete application. This thirty
day period does not begin until all the information described in
Sec. 702.242 has been submitted. The adjudicator shall examine the
settlement application within thirty days and shall immediately serve on
all parties notice of any deficiency. This notice shall also indicate
that the thirty day period will not commence until the deficiency is
corrected.
(c) If the adjudicator disapproves a settlement application, the
adjudicator shall serve on all parties a written statement or order
containing the reasons for disapproval. This statement shall be served
by certified mail within thirty days of receipt of a complete
application (as described in Sec. 702.242.) if the parties are
represented by counsel. If the disapproval was made by a district
director, any party to the settlement may request a hearing before an
ALJ as provided in sections 8 and 19 of the Act, 33 U.S.C. 908 and 919,
or an amended application may be submitted to the district director. If,
following the hearing, the ALJ disapproves the settlement, the parties
may: (1) Submit a new application, (2) file an appeal with the Benefits
Review Board as provided in section 21 of the Act, 33 U.S.C. 921, or (3)
proceed with a hearing on the merits of the claim. If the application is
initially disapproved by an ALJ, the parties may (1) submit a new
application or (2) proceed with a hearing on the merits of the claim.
(d) The parties may submit a settlement application solely for
compensation, or solely for medical benefits or for compensation and
medical benefits combined.
(e) If either portion of a combined compensation and medical
benefits settlement application is disapproved the entire application is
disapproved unless the parties indicate on the face of the application
that they agree to settle either portion independently.
(f) When presented with a settlement, the adjudicator shall review
the application and determine whether, considering all of the
circumstances, including, where appropriate, the probability of success
if the case were formally litigated, the amount is adequate. The
criteria for determining the adequacy of the settlement application
shall include, but not be limited to:
(1) The claimant's age, education and work history;
(2) The degree of the claimant's disability or impairment;
(3) The availability of the type of work the claimant can do;
(4) The cost and necessity of future medical treatment (where the
settlement includes medical benefits).
(g) In cases being paid pursuant to a final compensation order,
where no substantive issues are in dispute, a settlement amount which
does not equal the present value of future compensation payments
commuted, computed at the discount rate specified below, shall be
considered inadequate unless the parties to the settlement show that the
amount is adequate. The probability of the death of the beneficiary
before the expiration of the period during which he or she is entitled
to compensation shall be determined according to the most current United
States Life Table, as developed by the United States Department of
Health and Human Services, which shall be updated from time
to time. The discount rate shall be equal to the coupon issue yield
equivalent (as determined by the Secretary of the Treasury) of the
average accepted auction price for the last auction of 52 weeks U.S.
Treasury Bills settled immediately prior to the date of the submission
of the settlement application.
[50 FR 399, Jan. 3, 1985, as amended at 51 FR 4284, Feb. 3, 1986; 60 FR
51348, Oct. 2, 1995]
