(1) In the case of a covered employee who is deceased at the time of payment of compensation under this section, whether or not the death is the result of the covered employees occupational illness, such payment may be made only as follows:
(A) If the covered employee is survived by a spouse who is living at the time of payment, such payment shall be made to such surviving spouse.
(B) If there is no surviving spouse described in subparagraph (A), such payment shall be made in equal shares to all children of the covered employee who are living at the time of payment.
(C) If there is no surviving spouse described in subparagraph (A) and if there are no children described in subparagraph (B), such payment shall be made in equal shares to the parents of the covered employee who are living at the time of payment.
(D) If there is no surviving spouse described in subparagraph (A), and if there are no children described in subparagraph (B) or parents described in subparagraph (C), such payment shall be made in equal shares to all grandchildren of the covered employee who are living at the time of payment.
(E) If there is no surviving spouse described in subparagraph (A), and if there are no children described in subparagraph (B), parents described in subparagraph (C), or grandchildren described in subparagraph (D), then such payment shall be made in equal shares to the grandparents of the covered employee who are living at the time of payment.
(F) Notwithstanding the other provisions of this paragraph, if there is
(i) a surviving spouse described in subparagraph (A); and
(ii) at least one child of the covered employee who is living and a minor at the time of payment and who is not a recognized natural child or adopted child of such surviving spouse, then half of such payment shall be made to such surviving spouse, and the other half of such payment shall be made in equal shares to each child of the covered employee who is living and a minor at the time of payment.
(3) For purposes of this subsection
(A) the spouse of an individual is a wife or husband of that individual who was married to that individual for at least one year immediately before the death of that individual;
(B) a child includes a recognized natural child, a stepchild who lived with an individual in a regular parent-child relationship, and an adopted child;
(C) a parent includes fathers and mothers through adoption;
(D) a grandchild of an individual is a child of a child of that individual; and
(E) a grandparent of an individual is a parent of a parent of that individual.
