Mont. Code Ann. » TITLE 39. LABOR · CHAPTER 71. WORKERS' COMPENSATION · Part 7. Compensation and Benefits Generally
Montana Code Annotated

Mont. Code Ann. § 39-71-741 (2026)

Settlements And Lump-Sum Payments -- Legislative Intent

✓ current as of May 2026
Find cases: SyfertCases citing this section MT-LEGleg.mt.gov JustiaTitle on Justia CornellLII Search CasesGoogle Scholar
  1. MCA Contents
  2. TITLE 39
  3. CHAPTER 71
  4. Part 7
  5. 39-71-741 Settlements and lump-sum payments -- legislative intent

TITLE 39. LABOR

CHAPTER 71. WORKERS' COMPENSATION

Part 7. Compensation and Benefits Generally

Settlements And Lump-Sum Payments -- Legislative Intent

39-71-741. Settlements and lump-sum payments -- legislative intent. (1) By written agreement, a claimant and an insurer may convert benefits under this chapter in whole or in part into a lump sum. An agreement that settles a claim for any type of benefit is subject to department approval as provided in subsection (2). Lump-sum advances and payment of accrued benefits in a lump sum, except permanent total disability benefits under subsection (2)(c), are not subject to department approval. If the department fails to approve or disapprove the agreement in writing within 14 days of the filing with the department, the agreement is approved.

(2) The department shall directly notify a claimant of a department order approving or disapproving a claimant's settlement or lump-sum payment. Upon approval, the agreement constitutes a compromise and release settlement and may not be reopened by the department. The department may approve a settlement agreement to convert the following benefits to a lump sum only under the following conditions:

(a) all benefits if a claimant and an insurer dispute the initial compensability of an injury and there is a reasonable dispute over compensability;

(b) permanent partial disability benefits if an insurer has accepted initial liability for an injury. The total of any lump-sum payment in part that is awarded to a claimant prior to the claimant's final award may not exceed the anticipated award under 39-71-703. The department may disapprove an agreement under this subsection (2)(b) only if the department determines that the lump-sum payment amount is inadequate.

(c) permanent total disability benefits if the total of all lump-sum payments in part that are awarded to a claimant do not exceed $20,000. The approval or award of a lump-sum permanent total disability payment in whole or in part by the department or court is the exception. It may be given only if the worker has demonstrated financial need that:

(i) relates to:

(A) the necessities of life;

(B) an accumulation of debt incurred prior to the injury; or

(C) a self-employment venture that is considered feasible under criteria set forth by the department; or

(ii) arises subsequent to the date of injury or arises because of reduced income as a result of the injury.

(d) except as otherwise provided in this chapter, all other settlements and lump-sum payments agreed to by a claimant and insurer;

(e) medical benefits on an accepted claim if an insurer disputes the insurer's continued liability for medical benefits and there is a reasonable dispute over the medical treatment or medical compensability; or

(f) medical benefits on an accepted claim if the claimant has reached maximum medical improvement and the following applicable conditions are met:

(i) the insurer and claimant mutually agree to a settlement of all or a portion of medical benefits; and

(ii) a settlement is in the best interest of the parties to the settlement.

(3) The parties to a medical settlement agreement shall set out the rationale that is the basis for the settlement under subsection (2)(f), and the claimant shall indicate by a signed acknowledgment an understanding of what medical benefits will terminate because of the settlement.

(4) Any lump-sum conversion of benefits under this section must be converted to present value using the rate prescribed under subsection (5)(b).

(5) (a) An insurer may recoup any lump-sum advance amortized at the rate established by the department, prorated biweekly over the projected duration of the compensation period.

(b) The rate adopted by the department must be based on the average rate for United States 10-year treasury bills in the previous calendar year.

(c) If the projected compensation period is the claimant's lifetime, the life expectancy must be determined by using the most recent table of life expectancy as published by the United States national center for health statistics.

(6) A dispute between a claimant and an insurer regarding the conversion of biweekly payments into a lump sum is considered a dispute for which a mediator and the workers' compensation court have jurisdiction to make a determination.

(7) If an insurer and a claimant agree to a settlement or a lump-sum payment but the department disapproves the agreement, the parties may request the workers' compensation court to review the department's decision without requesting mediation.

(8) The legislature does not intend to allow settlement of undisputed medical claims under subsection (2)(f) unless all parties willingly agree to the settlement. The failure of the parties to willingly agree to a settlement does not constitute a dispute concerning benefits.

History: En. Sec. 16, Ch. 96, L. 1915; amd. Sec. 9, Ch. 100, L. 1919; re-en. Sec. 2926, R.C.M. 1921; re-en. Sec. 2926, R.C.M. 1935; amd. Sec. 1, Ch. 225, L. 1951; amd. Sec. 8, Ch. 234, L. 1957; amd. Sec. 2, Ch. 197, L. 1961; amd. Sec. 1, Ch. 9, L. 1975; amd. Sec. 1, Ch. 11, L. 1975; amd. Sec. 19, Ch. 23, L. 1975; R.C.M. 1947, 92-715; amd. Sec. 3, Ch. 63, L. 1979; amd. Sec. 1, Ch. 471, L. 1985; amd. Sec. 32, Ch. 464, L. 1987; amd. Sec. 64, Ch. 613, L. 1989; amd. Sec. 6, Ch. 574, L. 1991; amd. Sec. 20, Ch. 243, L. 1995; amd. Sec. 10, Ch. 310, L. 1997; amd. Sec. 9, Ch. 103, L. 2005; amd. Sec. 3, Ch. 36, L. 2011; amd. Sec. 14, Ch. 167, L. 2011.

Notes of Decisions
Cited in 41 cases (1 in the last 5 years), 1979–2021 · leading case: Buckman v. Montana Deaconess Hosp., 730 P.2d 380 (Mont. 1986).
Sort: Relevance Newest Treatment
Buckman v. Montana Deaconess Hosp., 730 P.2d 380 (Mont. 1986). · cites it 146× “The issues presented to us concern constitutional challenges to the 1985 legislative amendment to § 39-71-741, MCA, first presented to the legislature as S.”
Ingraham v. Champion Int'l, 793 P.2d 769 (Mont. 1990). · cites it 33× “Included in the legislation *771 were amendments to then-existing § 39-71-741, MCA. As amended, the subsections of § 39-71-741, MCA, under attack in this case are as follows: Compromise settlements, lump-sum payments, and lump-sum advance payments.”
Murer v. State Comp. Mut. Ins. Fund, 942 P.2d 69 (Mont. 1997). · cites it 28× “Claimants' first argument asserts that: (1) pursuant to Ingraham , impairment awards are not subject to the lump sum conversion requirements of § 39-71-741, MCA;(2) the settlement petitions used in this case (DOLI Form LF820) are specifically designed to *75 implement the…”
Wiard v. Liberty Nw. Ins. Corp., 2003 MT 295, 79 P.3d 281. · cites it 8× “The statute governing settlements, § 39-71-741, MCA (1991), contained no provision for closing medical benefits at the time of settlement of an accepted liability claim.”
Willis v. Long Constr. Co., 690 P.2d 434 (Mont. 1984). · cites it 98× “In doing so, the trial court erroneously relied on section 39-71-741, MCA, as constituting the authority for a reduction to present value.”
Barnard v. Liberty Nw. Ins., 2008 MT 254, 189 P.3d 1196. · cites it 80× “¶16 Section 39-71-741, MCA (2003),1 permits the conversion of workers’ compensation benefits to a lump sum in certain circumstances: (1) By written agreement filed with the department, benefits under this chapter may be converted in whole or in part into a lump sum. . . . The…”
Buckman v. Montana Deaconess Hosp., 776 P.2d 1210 (Mont. 1989). · cites it 16× “The Workers' Compensation Court denied the application of lump sum benefits pursuant to section 39-71-741, MCA (1985). On appeal, this Court stated that retroactive application of section 39-71-741(2) was unconstitutional for injuries occurring prior to 1985.”
Stelling v. Rivercrest Ranches, Inc., 730 P.2d 388 (Mont. 1986). · cites it 20× “The bill amended § 39-71-741, MCA, by (1) creating new criteria for establishing the need for a lump-sum award; and (2) requiring that lump-sum payments of permanent total disability benefits be discounted at 7% for each year of the estimated compensation period.”
State v. Bretz, 605 P.2d 974 (Mont. 1979). · cites it 6× “1947, now section 39-71-741 MCA. With respect to venue, we recognize that venue must be proven in a criminal case beyond a reasonable doubt.”
Willoughby v. Arthur G. McKee & Co., 609 P.2d 700 (Mont. 1980). · cites it 6× “A single issue is presented for review: Did the Workers’ Compensation Court abuse its discretion in granting claimant’s petition for a partial lump sum settlement? Statutory authority for the conversion of regular periodic benefits payable under the Workers’ Compensation Act to…”
Polich v. Whalen's O. K. Tire Warehouse, 634 P.2d 1162 (Mont. 1981). · cites it 7× “The first issue, regarding the nature and sufficiency of the evidence presented in support of a conversion of future biweekly benefits to a lump sum payment, has been addressed by this Court in many cases.”
Garmann v. E.R. Fegert Co., 736 P.2d 123 (Mont. 1987). · cites it 14× “As to the lump sum award issue, Section 39-71-741, MCA, provides that such an award is within the discretion of the Workers’ Compensation Court.”
Show all 41 citing cases →
Mont. Code Ann. § 39-71-741(1): 3 cases
Buckman v. Montana Deaconess Hosp., 730 P.2d 380 (Mont. 1986). “The issues presented to us concern constitutional challenges to the 1985 legislative amendment to § 39-71-741, MCA, first presented to the legislature as S.”
Barnard v. Liberty Nw. Ins., 2008 MT 254, 189 P.3d 1196. “¶16 Section 39-71-741, MCA (2003),1 permits the conversion of workers’ compensation benefits to a lump sum in certain circumstances: (1) By written agreement filed with the department, benefits under this chapter may be converted in whole or in part into a lump sum. . . . The…”
Ingraham v. Champion Int'l, 793 P.2d 769 (Mont. 1990). “Included in the legislation *771 were amendments to then-existing § 39-71-741, MCA. As amended, the subsections of § 39-71-741, MCA, under attack in this case are as follows: Compromise settlements, lump-sum payments, and lump-sum advance payments.”
Mont. Code Ann. § 39-71-741(1)(c): 1 case
Barnard v. Liberty Nw. Ins., 2008 MT 254, 189 P.3d 1196. “¶16 Section 39-71-741, MCA (2003),1 permits the conversion of workers’ compensation benefits to a lump sum in certain circumstances: (1) By written agreement filed with the department, benefits under this chapter may be converted in whole or in part into a lump sum. . . . The…”
Mont. Code Ann. § 39-71-741(1)(c)(i)(A): 1 case
Barnard v. Liberty Nw. Ins., 2008 MT 254, 189 P.3d 1196. “¶16 Section 39-71-741, MCA (2003),1 permits the conversion of workers’ compensation benefits to a lump sum in certain circumstances: (1) By written agreement filed with the department, benefits under this chapter may be converted in whole or in part into a lump sum. . . . The…”
Mont. Code Ann. § 39-71-741(2): 6 cases
Buckman v. Montana Deaconess Hosp., 730 P.2d 380 (Mont. 1986). “The issues presented to us concern constitutional challenges to the 1985 legislative amendment to § 39-71-741, MCA, first presented to the legislature as S.”
Murer v. State Comp. Mut. Ins. Fund, 942 P.2d 69 (Mont. 1997). “Claimants' first argument asserts that: (1) pursuant to Ingraham , impairment awards are not subject to the lump sum conversion requirements of § 39-71-741, MCA;(2) the settlement petitions used in this case (DOLI Form LF820) are specifically designed to *75 implement the…”
Buckman v. Montana Deaconess Hosp., 776 P.2d 1210 (Mont. 1989). “The Workers' Compensation Court denied the application of lump sum benefits pursuant to section 39-71-741, MCA (1985). On appeal, this Court stated that retroactive application of section 39-71-741(2) was unconstitutional for injuries occurring prior to 1985.”
Martin v. the Hartford, 2004 MT 57, 86 P.3d 569.
Burkland v. Cop Constr., 728 P.2d 806 (Mont. 1986).
Mont. Code Ann. § 39-71-741(2)(c): 2 cases
Buckman v. Montana Deaconess Hosp., 730 P.2d 380 (Mont. 1986). “The issues presented to us concern constitutional challenges to the 1985 legislative amendment to § 39-71-741, MCA, first presented to the legislature as S.”
Garmann v. E.R. Fegert Co., 736 P.2d 123 (Mont. 1987). “As to the lump sum award issue, Section 39-71-741, MCA, provides that such an award is within the discretion of the Workers’ Compensation Court.”
Mont. Code Ann. § 39-71-741(3): 2 cases
Buckman v. Montana Deaconess Hosp., 730 P.2d 380 (Mont. 1986). “The issues presented to us concern constitutional challenges to the 1985 legislative amendment to § 39-71-741, MCA, first presented to the legislature as S.”
Garmann v. E.R. Fegert Co., 736 P.2d 123 (Mont. 1987). “As to the lump sum award issue, Section 39-71-741, MCA, provides that such an award is within the discretion of the Workers’ Compensation Court.”
Mont. Code Ann. § 39-71-741(4): 1 case
Barnard v. Liberty Nw. Ins., 2008 MT 254, 189 P.3d 1196. “¶16 Section 39-71-741, MCA (2003),1 permits the conversion of workers’ compensation benefits to a lump sum in certain circumstances: (1) By written agreement filed with the department, benefits under this chapter may be converted in whole or in part into a lump sum. . . . The…”
Mont. Code Ann. § 39-71-741(6): 1 case
Wiard v. Liberty Nw. Ins. Corp., 2003 MT 295, 79 P.3d 281. “The statute governing settlements, § 39-71-741, MCA (1991), contained no provision for closing medical benefits at the time of settlement of an accepted liability claim.”
Mont. Code Ann. § 39-71-741(l)(c): 2 cases
Barnard v. Liberty Nw. Ins., 2008 MT 254, 189 P.3d 1196. “¶16 Section 39-71-741, MCA (2003),1 permits the conversion of workers’ compensation benefits to a lump sum in certain circumstances: (1) By written agreement filed with the department, benefits under this chapter may be converted in whole or in part into a lump sum. . . . The…”
Martin v. the Hartford, 2004 MT 57, 86 P.3d 569.
Mont. Code Ann. § 39-71-741(l)(c)(i)(A): 1 case
Barnard v. Liberty Nw. Ins., 2008 MT 254, 189 P.3d 1196. “¶16 Section 39-71-741, MCA (2003),1 permits the conversion of workers’ compensation benefits to a lump sum in certain circumstances: (1) By written agreement filed with the department, benefits under this chapter may be converted in whole or in part into a lump sum. . . . The…”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.