DEPARTMENT OF LABOR AND EMPLOYMENT
Division of Workers’ Compensation
7 CCR 1101-3
	WORKERS’ COMPENSATION RULES OF PROCEDURE

Rule 5	Claims Adjusting Requirements
The entire text of Rule 5-10 has been stricken and replaced by the following 
5-10	LUMP SUM PAYMENT OF AN AWARD
	(A)	When the permanent partial disability award is for whole person or scheduled impairment and the injury or illness occurred on or after July 1, 1991, the following applies per § C.R.S. 8-42-107 (8):
(1)	where the injury or illness occurred on or after July 1, 1991, but prior to April 29, 1992, a lump sum payment of $10,000.00 or the remainder, if less, may be paid on the claimant’s written request to the insurer.  The insurer shall respond within ten (10) days from the date of the mailing of the request as to whether it will grant the lump sum.  If a lump sum is granted, the insurer shall calculate the sum certain and issue payment taking applicable offsets (i.e., disability benefits, incarceration, garnishments) within ten (10) days from the date of mailing of the request by the claimant.
(2)	where the injury or illness occurred on or after April 29, 1992, a lump sum of $10,000.00 or the remainder, if less, shall automatically be paid, less discount, on the claimant’s written request to the insurer. The insurer shall calculate the sum certain and issue payment taking applicable offsets (i.e., disability benefits, incarceration, garnishments) within ten (10) days from the date of mailing of the request by the claimant.
	(B)	 
		(1)    	If the claimant is represented, a request for a lump sum payment of a portion or remaining permanent partial, permanent total, or dependents’ benefits shall be made by submitting a Request for Lump Sum Payment form to the insurer and the Division, if the claimant has indicated that the admission will be accepted as filed, relative to permanency.   Within ten (10) days of the date the Request for Lump Sum Payment form was mailed, the insurer shall issue the payment and file the required benefit payment information with the Division, the claimant and the claimant’s attorney.  
		(2) 	The insurer shall have ten (10) days from the claimant’s request to object to the payment of the lump sum.  Prior to payment and within the initial ten (10) day time period, the insurer shall submit the lump sum calculations to claimant, claimant’s attorney and the Division providing the reason for the objection.  Upon receipt of the form the Director shall make a determination on the lump sum request.  
			(3)	The claimant shall have ten (10) days from receipt of the payment and payment information to object to the accuracy of the payment by stating the basis for the objection, in writing, to the Division and insurer.  Following receipt of the objection, the Director shall make a determination on the lump sum payment.  
			(4)	The total of all lump sums may not exceed $60,000 per claim.  

(C)

(1)	If the claimant is not represented, a request for a lump sum payment of a portion or remaining permanent partial, permanent total, or dependents’ benefits shall be made by submitting a Request for Lump Sum Payment to the insurer and the Division if the clamant has indicated that the admission will be accepted as filed, relative to permanency.  Within ten (10) days of the date the Request for Lump Sum Payment form was mailed, the insurer shall file the required lump sum calculation information with the Division and the claimant. 
		(2)  	The claimant shall have ten (10) days from receipt of the benefit payment information provided by the insurer to object to the accuracy of this information.  In the absence of an objection, a lump sum order issued by the Director will be based upon the information submitted.  
		(3)  	The total of all lump sums may not exceed $60,000 per claim.   
		(D)    	The insurer shall issue payment within ten (10) days of the date of mailing of the order by the Director.