(a) Death.

(1) The division of claims and risk management is authorized after proper investigation to pay a death benefit to or for the survivor prescribed in subdivision (a)(3), upon receiving certification by the adjutant general of the death of any member of the national guard who:

(A) Dies while performing full time training, or duty under §§ 58-1-106, 58-1-108 and 58-1-205; or

(B) Dies within one hundred twenty (120) days thereafter if death resulted from injury sustained or disease incurred or aggravated while performing such training or duty or returning from the same.

(2) The death benefit so paid shall be the same as those as are now provided under the Workers' Compensation Law of this state, compiled in title 50, chapter 6, or as that law shall be hereinafter amended; provided, however, that the benefit paid shall be based on and determined by the percentage of the average weekly pay the guard member would have received while on active federal duty; and provided further, that no benefit so paid shall be less than one hundred thousand dollars ($100,000), and at the option of the beneficiaries, the amount shall be paid in a lump sum and without being commuted.

(3)

(A) The benefit shall be paid to or for the benefit of the living survivor highest on the following list:

(i) Surviving spouse;

(ii) Children including children by adoption and illegitimate children who are members of the decedent's household and/or who have been acknowledged;

(iii) Parents;

(iv) Brothers and sisters in equal shares.

(B) No further beneficiaries shall be recognized.

(4) The death benefit herein provided shall be payable without regard to legal liability and the state shall not be entitled to subrogation in any instance.

(b) Injuries. When any member of the national guard is injured while performing duty as set forth in subdivision (b)(1), the division of claims and risk management shall compensate guard member in the same manner and to the same extent as now provided under the Workers' Compensation Law of this state; provided, however, that:

(1) The compensation so paid shall be based upon and determined by the percentage of the average weekly pay the guard member would have received while on active duty;

(2) The compensation so received shall in no event be less than fifty dollars ($50.00) per week; and

(3) The compensation shall be payable in a lump sum without commutation.

(c) Coordination of Benefits. For the purpose of coordinating benefits payable from the state and from the federal government as the result of the death or injury of a member of the Tennessee national guard, any workers' compensation benefits provided by the state shall be reduced by the amount of any medical care, hospitalization, or incapacitation pay benefits paid by the federal government to such guard member or statutory beneficiary as the result of injury or death.

(d) Investigation.

(1) No benefits for death or injury shall be paid unless and until a board of Tennessee national guard officers appointed by the adjutant general consisting of not less than three (3) officers, at least one (1) of which shall be a medical officer, shall submit, after a full evidentiary hearing according to military regulations, its findings and recommendations for approval, certification, and transmittal by the adjutant general to the division of claims and risk management, that the deceased or injured guard member was in the course of employment at the time of his death or injury or when the disease or injury which produced death was incurred.

(2) Upon receipt of the board's report and recommendations of the adjutant general, the division of claims and risk management shall determine whether the injury or death of such member of the national guard arose out of and in the course of employment under the Workers' Compensation Law of this state and, if appropriate, act upon such claim.

(e) Appeal. Any guard member, or any statutory beneficiary as hereinabove enumerated, whose claim is denied by the division of claims and risk management shall have the right to file the guard member's claim with the claims commission within ninety (90) days of the date of such denial. Any decision of the claims commission pertaining to the death or injury of a member of the national guard shall be subject to judicial review pursuant to the procedure for workers' compensation cases under § 50-6-225.