1. (1) General.

   1. (a) This section applies to claims in which a Notice of Closure is issued on or after Jan. 1, 2026.

   2. (b) When the total amount of the award for permanent partial disability is $6,000 or less, the insurer must pay the total amount of the award to the worker in a lump-sum payment. When the total amount of the award for permanent partial disability exceeds $6,000, the worker or worker’s attorney may request a lump-sum payment of all or part of the award.

      1. (A) Subject to paragraph (B) of this subsection, if the worker or worker’s attorney has requested a lump-sum payment of an award where the total amount of the award exceeds $6,000, the insurer must make the payment requested if:

         1. (i) The worker has waived the right to request reconsideration of the Notice of Closure; or
         2. (ii) The award has become final by operation of law.

      2. (B) The insurer is not required to make the payment requested if:

         1. (i) The insurer timely requests reconsideration of the Notice of Closure under ORS 656.268(5)(e) and the reconsideration proceeding has not yet been completed;
         2. (ii) The payment of compensation has been stayed pending a request for hearing or review under ORS 656.313; or

         3. (iii) The worker is enrolled and actively engaged in an authorized training plan under OAR 436-120. For dates of injury before Jan. 1, 2005, the insurer may not approve a request for lump-sum payment of unscheduled permanent disability. For dates of injury on or after Jan. 1, 2005, the insurer may not approve a request for lump-sum payment of work disability when the worker:

            1. (I) Has been found eligible for an authorized training plan under OAR 436-120 and will start the plan within 30 days of the date of the decision on the lump-sum request;
            2. (II) Is actively enrolled and engaged in an authorized training plan under OAR 436-120; or
            3. (III) Has temporarily withdrawn from an authorized training plan under OAR 436-120.
2. (2) Application for approval. When an insurer receives a request for a lump-sum payment from the worker or the worker’s attorney, the insurer must send Form 1174, "Application for Approval of Lump-sum Payment of Award," to the requestor within 10 business days.
3. (3) Reopening of claims. For the purpose of this rule, each opening of the claim is considered a separate claim and any subsequent permanent partial disability award from a claim reopening is a new and separate award. Additional award of permanent partial disability obtained through the appeal process is considered part of the total cumulative award for the open period of that claim.
4. (4) Approved requests. If the insurer approves the worker’s request for lump-sum payment of a permanent partial disability award in excess of $6,000, the insurer must make the lump-sum payment within 14 days of receipt of the signed application.
5. (5) Denied requests. If the insurer denies the worker’s request for lump-sum payment of a permanent partial disability award in excess of $6,000, the insurer must respond to the requestor within 14 days of receiving the request, explaining the reason for denying the lump-sum request.
6. (6) Claim disposition agreements. A lump-sum payment ordered in a litigation order or that is a part of a claim disposition agreement under ORS 656.236 does not require further approval by the insurer.
7. (7) Partial payments. When a lump-sum payment for only part of an award is approved by the insurer, it must be paid in addition to the regularly scheduled monthly payment. The remaining balance must be paid under ORS 656.216. Denial or partial approval of a request does not preclude another request by the worker for a lump-sum payment of all or part of any remainder of the award, provided additional information is submitted.

Statutory/Other Authority

ORS 656.704 & ORS 656.726(4)

Statutes/Other Implemented

ORS 656.704, ORS 656.726(4) & ORS 656.230

History

WCD 5-2025, amend filed 12/23/2025, effective 01/01/2026
WCD 14-2024, amend filed 06/07/2024, effective 07/01/2024
WCD 13-2022, amend filed 12/19/2022, effective 01/01/2023
WCD 7-2020, amend filed 03/13/2020, effective 04/01/2020
WCD 6-2016, f. 11-28-16, cert. ef. 1-1-17
WCD 5-2008, f. 12-15-08, cert. ef. 1-1-09
WCD 10-2007, f. 11-1-07, cert. ef. 1-1-08
WCD 8-2005, f. 12-6-05, cert. ef. 1-1-06
WCD 9-2004, f. 10-26-04, cert. ef. 1-1-05
WCD 2-2004, f. 2-19-04, cert. ef. 2-29-04
WCD 10-2002, f. 10-2-02, cert. ef. 11-1-02
WCD 11-2001, f. 11-30-01, cert. ef. 1-1-02
WCD 5-1996, f. 2-6-96, cert. ef. 2-12-96
WCD 7-1994, f. 8-11-94, cert. ef. 8-28-94
WCD 29-1990, f. 11-30-90, cert. ef. 12-26-90
WCD 6-1989, f. 12-22-89, cert. ef. 1-1-90
WCD 4-1987, f. 12-18-87, cert. ef. 1-1-88
WCD 8-1985, f. 12-12-85, cert. ef. 1-1-86
WCD 8-1983, f. 12-29-83, cert. ef. 1-1-84, Renumbered from 436-054-0250
WCD 6-1981, f. 12-23-81, cert. ef. 1-1-82
WCD 1-1980, f. & cert. ef. 1-11-80
WCB 5-1974, f. 2-13-74, cert. ef. 3-11-74
WCB 6-1966, f. & cert. ef. 6-24-66