NOTICE OF HEARING TO CONSIDER AMENDMENTS TO THE
WORKERS’ COMPENSATION RULES OF PROCEDURE, 7CCR 1101-3

Notice is given of a public hearing to afford all interested persons an opportunity to be heard prior to the adoption of proposed amendments to the Workers’ Compensation Rules of Procedure, 7 C.C.R. 1101-3 as described below.  The Director of the Division of Workers’ Compensation has the authority to promulgate rules pursuant to the Workers’ Compensation Act as set forth in C.R.S. sections 8-47-107.

Date and Time of Hearing:	August 13, 2007
9:00 a.m. 

Place of Hearing:			2nd Floor Conference Room
					633 17th Street
					Denver, CO

The public hearing will be held in accordance with the provisions of the Colorado Administrative Procedures Act, section 24-4-103, CRS.  Any interested party is invited to appear at the hearing and testify or to submit written data, arguments or position papers to Bob Summers, Director, Division of Workers’ Compensation, 633 17th Street, Suite 400, Denver, CO 80202.  Any written submissions should be submitted to the Director prior to the hearing on August 13, 2007.   

The topic to be considered is:

Rule 5-10: 	Increases the aggregate of all lump sums granted to $60,000; requires insurers to provide a payment of a $10,000.00 lump sum to the injured worker upon written request for both scheduled and non-scheduled awards; provides that an injured worker who is represented by an attorney shall request a lump sum payment directly from the insurer; requires lump sum payments within 10 days of a represented injured worker’s request; requires insurers to file calculations and proof of lump sum payments with the Division; specifies that the Division will calculate lump sum payments for injured workers who are not represented and issue applicable orders related to lump sum payments. 

Proposed rule revisions will be available at the Department’s website on or before June 8, 2007.  Copies of the proposed rules, the proposed statement of basis and purpose and a regulatory analysis will be available on August 7, 2007, at the Division’s Customer Service counter, 633 17th Street, 4th Floor, Denver, Colorado, or on the website.

Bob Summers			June 6, 2007
Director              	DATE

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.