(1) In all lump sum conversion requests, the worker or his beneficiary must demonstrate that his ability to sustain himself financially is more probable with a whole or partial lump sum conversion than with biweekly payments and his other resources, or the application for a lump sum conversion will be denied.

(2) In permanent total lump sum conversion requests, if the worker or his beneficiary demonstrates in addition that his ability to sustain himself financially is more probable with a whole or partial lump sum conversion than with biweekly payments and his other resources, then:

(a) If the worker or his beneficiary demonstrates that his financial condition under the lump sum proposal will not be greater than could have reasonably been expected had the worker not been injured, the lump sum will be approved only if it is limited to the unpaid biweekly benefits, assuming interest at 7% per year, compounded annually.

(b) If the worker or his beneficiary demonstrates that he will improve his financial condition with the lump sum over what could have been reasonably expected had the worker not been injured, the lump sum will be approved only if it is limited to the purchase price to the insurer of an annuity that would yield an amount equal to the biweekly benefits payable over the estimated duration of the compensation period.

(3) If the estimated duration of the compensation period is the remaining life expectancy of the worker or his beneficiary, the remaining life expectancy will be determined by using the most recent Life Table: Expectation of Life at Single Years of Age, by Race and Sex: United States, all races, both sexes column, in Vital Statistics of the United States, Volume II-Mortality, Part A, U.S. Department of Health and Human Services, Public Health Service, National Center for Health Statistics.

(4) If the difference between the present discounted value of a permanent total lump sum and the future value of the biweekly payments is the only ground for the lump sum, the lump sum conversion will be denied.

(5) The department will deny or approve all lump sum settlement applications within 30 days of receipt. If additional information is required to enable a determination on such applications, it will be requested within the 30 day review period. If additional information is not received within 30 days, the application will be denied on the basis of lack of information.