To repeal section 287.390, RSMo 1994, relating to workers' compensation, and to enact in lieu thereof one new section relating to the same subject.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI, AS FOLLOWS:

     Section A. Section 287.390, RSMo 1994, is repealed and one new section enacted in lieu thereof, to be known as section 287.390, to read as follows:

     287.390. 1. Nothing in this chapter shall be construed as preventing the parties to claims hereunder from entering into voluntary agreements in settlement thereof, but no agreement by an employee or his dependents to waive his rights under this chapter shall be valid, nor shall any agreement of settlement or compromise of any dispute or claim for compensation under this chapter be valid until approved by an administrative law judge or the commission, nor shall an administrative law judge or the commission approve any settlement for which [is] they have not [in accordance with] explained the rights of [the] any unrepresented parties as given in this chapter. No such agreement shall be valid unless made after seven days from the date of the injury or death.

     2. If the employee or his dependents and the employer wish to agree to a settlement or cannot agree to a settlement, the administrative law judge, associate administrative law judge or legal advisor shall not refer, send, or otherwise direct either party to any attorney, physician or other provider of services, except as provided under subsection 2 of section 287.210.

     3. It shall be the policy of the division that no employee of the division shall refer, send, or otherwise direct any party to any attorney or panel of attorneys, physician or other provider of services.

     4. In the case of compromise settlements in which the employer and the employee, with or without representation by attorney, agree to the settlement, and in which the amount of the settlement equals or exceeds the physician's rating pursuant to subsection 6 of section 287.210, the division shall not refuse to approve the compromise settlement agreement.

     [2.] 5. A compromise settlement approved by an administrative law judge or the commission during the employee's lifetime shall extinguish and bar all claims for compensation for the employee's death if the settlement compromises a dispute on any question or issue other than the extent of disability or the rate of compensation.

     [3.] 6. Notwithstanding the provisions of section 287.190, an employee shall be afforded the option of receiving a compromise settlement as a one-time lump sum payment. A compromise settlement approved by an administrative law judge or the commission shall indicate the manner of payment chosen by the employee.

     [4.] 7. A minor dependent, by parent or conservator, may compromise disputes and may enter into a compromise settlement agreement, and upon approval by an administrative law judge or the commission the settlement agreement shall have the same force and effect as though the minor had been an adult. The payment of compensation by the employer in accordance with the settlement agreement shall discharge the employer from all further obligation.