GQ Corner

Q: Does an annuity settlement require Division approval?

A: Yes, you must have DWC approval to pay a claim  by annuity. Technically, this is a transfer of payment responsibility and not a settlement. However, be aware that the ultimate responsibility to make payments remains with the carrier even though the annuity carrier is making the payments. As a result, if the annuity carrier goes bankrupt or out of business, the comp carrier must resume payments to the claimant or beneficiary. Furthermore, before you request an annuity, make sure the payments are based on a complete, proper wage statement to avoid any issues with the Division from a compliance standpoint. 

Q: We have an insured that wants to know if it’s acceptable to have their employee’s sign a “waiver of workers’ compensation benefits” for employer sponsored voluntary recreational and/or fitness activities. From a workers’ compensation standpoint, would this waiver be binding?

A: Under Texas Labor Code Section 406.035, an agreement by an employee to waive the employee’s right to compensation is void. Under Texas law, an employee can waive workers’ compensation either at the beginning of his employment if within five days of hire he rejects workers’ compensation coverage and elects to retain his common law rights, or if the carrier newly acquires workers’ compensation coverage.

Q: Claimant has been back at work full duty for one month earning his full pre-injury wages. We just received a certification of MMI and IR that assigned a 10% and we will thus pay IIBs for the next seven months. If claimant works for two more months, can he then elect to commute his IIBs and receive the remainder in a lump sum?

A: The claimant will need to continue to work the remaining two months earning at least 80% of his pre-injury AWW. Tex. Lab. Code § 408.128; Rule 147.10. If he fails to do so, commutation will not allowed. The claimant will also need to fill out a DWC 51 to ask for a lump sum once he is eligible for commutation, which you will then approve or deny within 14 days of your receipt of the request.