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  1. #1
    Join Date
    Apr 2008
    Posts
    308

    Default Loss of Income Versus Rating

    I know this question has been asked before, and I know in NC, and injured worker has a choice between loss of income and rating when settlement or mediation time approaches. How would loss of income be figured if an injured worker is unable to return to any work even if rating is not 70% to 90%. If you had previouly held a physically demanding job, at a high pay and restrictions just make it impossible to allow for suitable work, then how is loss of income calculated. I don't believe that IC wants to pay maximum TTD forever and I understand from my standpoint I need to perform a diligent job search and keep a record of such a search, but with the job market what it is
    and for the few jobs that already exist in my field finding a job is going to be nearly impossible. Are cases like this based on age, life expectancy, rate of pay etc.

  2. #2
    Join Date
    Feb 2007
    Location
    831 East Morehead St., Ste 355, Charlotte, NC 28202
    Posts
    3,762

    Default Re: Loss of Income Versus Rating

    Under the TTD statute, NCGS 97-29, you get your weekly check until you either return to suitable employment or die. This means that some folks have a lifetime entitlement to the weekly check. For settlement purposes, we calculate the "present value" of that stream of checks for your particular life expectancy. We typically use a discount rate of 8% for the PV calculation. The insurance company will not pay the present value to settle, but will often pay as much as 75% of it to settle, depending on other factors in the case. You need a computer program or an accountant or a programmable calculator (I use the Texas Instruments BA II Plus; $35 at Target) to calculate the PV. You also need your age, your weekly comp rate, and your life expectancy. Absent a rated age you can use the expectancy table in NCGS 8-46.

    Example: 45 year old in NC has expectancy of 33.8 more years (1757 weeks)per chart in GS 8-46. Comp rate is $500 per week. Discount rate is 8% per year.

    The PV of that stream of checks for next 33.8 years would be approximately: $303,200

    If you did not settle but were entitled to draw $500 per week for the next 33.8 years, you would end up getting $878,500 over that period of years.
    The North Carolina Court of Appeals has held that "In contested Workers' Compensation cases today, access to competent legal counsel is a virtual necessity." Church v. Baxter Travenol Labs, Inc., and American Motorists Insurance Company, 104 N.C. App. 411, 416 (1991).

    Bob Bollinger, Attorney and Board Certified Specialist in NC Workers' Compensation Law

  3. #3
    Join Date
    Apr 2008
    Posts
    308

    Default Re: Loss of Income Versus Rating

    Thanks Bob, I'll try to figure it out, but have a much better idea of how it all works. I am 52 years old and have a weekly rate of 754.00 per week.

  4. #4
    Join Date
    Feb 2007
    Location
    831 East Morehead St., Ste 355, Charlotte, NC 28202
    Posts
    3,762

    Default Re: Loss of Income Versus Rating

    RGN--keep doing that diligent and well-documented job search so that you can keep all your options open. BB
    The North Carolina Court of Appeals has held that "In contested Workers' Compensation cases today, access to competent legal counsel is a virtual necessity." Church v. Baxter Travenol Labs, Inc., and American Motorists Insurance Company, 104 N.C. App. 411, 416 (1991).

    Bob Bollinger, Attorney and Board Certified Specialist in NC Workers' Compensation Law

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