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New York General Obligations - Title 3 - § 5-335 Limitation of Reimbursement and Subrogation Claims in Personal Injury and Wrongful Death Actions

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General Obligations 
 
    §  5-335.  Limitation  of  reimbursement  and  subrogation  claims  in
  personal injury and wrongful death actions. (a) When a person settles  a
  claim,  whether  in  litigation  or otherwise, against one or more other
  persons  for  personal   injuries,   medical,   dental,   or   podiatric
  malpractice,  or  wrongful death, it shall be conclusively presumed that
  the settlement does not include any compensation for the cost of  health
  care  services,  loss  of  earnings or other economic loss to the extent
  those losses or expenses have been  or  are  obligated  to  be  paid  or
  reimbursed by an insurer. By entering into any such settlement, a person
  shall  not  be deemed to have taken an action in derogation of any right
  of any insurer that  paid  or  is  obligated  to  pay  those  losses  or
  expenses;  nor  shall a person's entry into such settlement constitute a
  violation of any contract between the person and such insurer.
    No person entering into such  a  settlement  shall  be  subject  to  a
  subrogation  claim  or  claim  for  reimbursement  by  an insurer and an
  insurer shall have no lien or  right  of  subrogation  or  reimbursement
  against  any  such  settling  person  or  any  other  party  to  such  a
  settlement, with respect to those losses or expenses that have  been  or
  are obligated to be paid or reimbursed by said insurer.
    (b)  This  section shall not apply to a subrogation claim for recovery
  of  additional  first-party  benefits  provided  pursuant   to   article
  fifty-one  of  the  insurance  law.  The  term  "additional  first-party
  benefits", as used in this subdivision,  shall  have  the  same  meaning
  given  it  in  section  65-1.3  of  title  11  of  the  codes, rules and
  regulations of the state of New York as of the effective  date  of  this
  statute.
    (c)  This  section  shall  not apply to a subrogation or reimbursement
  claim for  recovery  of  benefits  provided  by  Medicare  or  Medicaid,
  specifically  authorized  pursuant to article fifty-one of the insurance
  law, or pursuant to a policy  of  insurance  or  an  insurance  contract
  providing workers' compensation benefits.
Section:  Previous  5-322  5-322.1  5-322.2  5-322.3  5-323  5-324  5-325  5-326  5-327  5-328  5-331  5-332  5-333  5-334  5-335

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Last modified: February 15, 2014