(1) If the department finds that an application for lump sum conversion does not adequately demonstrate the ability of the worker or his beneficiary to sustain himself financially, the department may order, at the insurer's expense, financial, medical, vocational rehabilitation, educational or other evaluative studies to determine whether a lump sum conversion is in the best interest of the worker or his beneficiary.

(2) The department's order will specify the reasons why the application for lump sum conversion is inadequate and the type of evaluative studies required.

(3) The department must be advised of the results of all evaluative studies and may determine after the studies have been completed whether to act on the pending application or to require a new application for lump sum conversion.

(4) If, after receipt of the order, the worker or his beneficiary and the insurer cannot agree on a provider or providers to perform the evaluative studies, the department shall make such designation.