R602-6-4. Procedure

A. Parties interested in a present or potential workers' compensation claim, whether or not an application for hearing has been filed, may submit their settlement agreement to the Commission for review and approval. The Commission may delegate its authority to review and approve such agreements.

B. Each settlement agreement shall be in writing, executed by each party and such party's attorney, if any, and shall include a proposed order for Commission approval of the agreement.

C. Each settlement agreement shall set forth the nature of the claim being settled and what claims are in dispute, if any.

D. Each settlement agreement shall contain a statement that each party understands that the agreement is permanent, binding and constitutes full and final settlement of any right the claimant may otherwise have to future benefits, including medical benefits. The Commission may establish an approved form for complying with the foregoing disclosure requirement.

E. Attorney's fees shall be allowed as provided by Rule R602-2-4. Each settlement agreement shall describe the amount to be paid to claimant's counsel as attorney's fees and costs, the manner in which such amounts are computed and the method of payment thereof.

F. The settlement agreement may provide for payment of benefits through insurance contract or by other third parties if the Commission determines: a) such payment provisions are secure, and b) such payment provisions do not relieve the parties of their underlying liability for payments required by the agreement.

G. Upon receipt of a proposed settlement agreement meeting the requirements of this rule, the Commission shall review such proposed agreement.

H. As needed, the Commission may contact the parties and others to obtain further information about the proposed settlement.

I. If the Commission determines that a proposed settlement agreement conforms with this rule, the Commission shall approve such agreement and notify the parties in writing.

J. If the Commission determines that a proposed settlement agreement does not comply with this rule, the Commission shall notify the parties in writing of its reasons for rejecting the proposed agreement.

K. The Commission shall retain a record of its action on all settlement agreements submitted to it for approval.