(a) Upon the request of the injured employee, the insurance
carrier and an employee entitled to impairment income benefits (IIBs) may
agree to change the frequency of IIBs payments from the standard weekly period
to a monthly period. The agreement to change the payment frequency must be
in writing and is only required to be filed with the Commission if the Commission
requests a copy. To relieve the insurance carrier of the responsibility to
pay IIBs weekly, a valid written agreement must include the following terms
and conditions:
(1) the agreement for the monthly payment of IIBs payments
shall be effective the first calendar day of the month following the month
in which the written agreement was entered into by the insurance carrier and
the injured employee;
(2) monthly IIBs payment shall be issued on or before
the seventh day of the month for which benefits are due;
(3) weekly IIBs payments shall continue through the end
of the month in which the agreement was signed.;
(4) payment of the last week of IIBs to transition from
weekly payment of IIBs to monthly payments shall be prorated to the end of
the month to ensure the injured employee receives IIBs through the last day
of the month;
(5) if less than the maximum weekly compensation rate
in effect on the date of the compensable injury is being paid, a completed
Employer's Wage Statement must be included with the injured employee's copy
of the written agreement;
(6) the monthly benefit amount shall be equal to the
weekly compensation rate for IIBs that the injured employee is entitled to
multiplied by 4.34821; and
(7) the impairment rating and source of the impairment
rating upon which payment of IIBs is being based.
(b) An injured employee and insurance carrier may not agree
to the monthly payment of IIBs until the impairment rating has been agreed
to or has become final. The entering into an agreement under this section
may not be used for the purpose of finalizing an impairment rating
(c) The agreement for the monthly payment of IIBs shall expire
upon the suspension or termination of IIBs in accordance with the Act and
Commission rules. The last monthly payment shall be prorated to ensure the
insurance carrier pays the appropriate amount of IIBs.
(d) At any time after signing the agreement for the monthly
payment of IIBs, the injured employee or the insurance carrier may notify
the other party in writing that it no longer agrees to the monthly payment
of IIBs. In this case, the insurance carrier shall pay all accrued but unpaid
IIBs at the end of the current monthly cycle and shall continue paying IIBs
weekly as and when they accrue and are due.
(e) Effective Date. This section applies only to agreements
entered into on or after January 1, 2000, for payment of IIBs under the provisions
of the Act.
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