Which statement is true regarding the effect when death results from serious and willful misconduct?

Which statement is true regarding the effect when death results from serious and willful misconduct?

• A. The 50% reduction applies
• B. The 50% reduction applies only if PD is less than 70%
• C. The 50% reduction applies regardless of death
• D. The 50% reduction does not apply in death cases

Answer: (D)

When serious and willful misconduct is involved, there is a potential penalty that reduces permanent disability benefits for a living worker who has sustained a permanent impairment. But if death occurs, there is no permanent disability award to reduce. Death benefits are issued to eligible dependents under a separate framework and are not subject to the PD reduction rule. So, the reduction does not apply in death cases. This is why the statement that the 50% reduction does not apply when death results is the correct one.

When serious and willful misconduct is involved, there is a potential penalty that reduces permanent disability benefits for a living worker who has sustained a permanent impairment. But if death occurs, there is no permanent disability award to reduce. Death benefits are issued to eligible dependents under a separate framework and are not subject to the PD reduction rule. So, the reduction does not apply in death cases. This is why the statement that the 50% reduction does not apply when death results is the correct one.