Generally, benefits continue until the lump sum settlement has been approved by the
judge as required by RS 23:1271 and 1272. In Louisiana, an employer and/or its workers'
compensation insurance carrier may discontinue benefits for good cause; however, not
simply because a settlement has been reached. Benefits are usually cut off due to
some act or omission by the worker. However, the party cutting off benefits assumes
the risk that the court will determine that the discontinuation was arbitrary and
capricious. Such a finding results in an award of penalties and attorney fees.
Reference: Louisiana
Revised Statutes, (R.S.)
23:1201