Defense Base Act claims for foreign nationals are often resolved by settlement. The settlement is calculated by reference to the claim’s “commutation value.” Coronavirus has caused market changes and prompted interest rate cuts. As of March 4, 2020, the one year constant maturity rate was 0.59%, down from 1.98% just nine months earlier. Because “commutation value” is dependent on the interest rate, the recent market change has a huge effect on the Defense Base Act industry. The lower the one year constant maturity interest rate, the more expensive the “commutation value.” As such, it might be necessary to reconsider outstanding settlement demands because the DBA claim’s value has likely changed. What is Commutation? In the Defense Base Act context, “commutation” is a remedy whereby insurance carriers can reduced their liability for indemnity benefits by one-half. The relevant statute, 42 U.S.C. 1652(b), states: Compensation for permanent total or permanent partial disability underRead more