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If I receive permanent partial disability benefits am I settling my workers compensation case?

No you are not settling. 

The acceptance of a permanent partial disability payment is not a settlement or closing your workers’ compensation case. Instead, it is a benefit, just like wage loss or mileage, that you are owed. Even if you think you are entitled to a higher amount or percentage you are not giving up the right to future benefits or even a higher permanent partial disability rating. 

For example, the insurance company’s adverse examiner assigns a 6% PPD rating. You think it should be higher. In fact your doctor assigns a 9% PPD rating. The insurance company cuts you a check for 6%. You are not giving up any rights by accepting the 6% payment. You still maintain the right to fight to get the additional 3%. A workers’ compensation attorney can you do just that. 

You should speak with an attorney to confirm the correct rating, whether you are at MMI and entitled to PPD or to fight to get you PPD benefits. Consultations are free.