§ 5-335 — Limitation of reimbursement and subrogation claims in personal injury and wrongful death actions

New York § 5-335

• Jurisdiction: New York
• Law GOB: General Obligations
• Title 3: Certain Prohibited Contracts and Provisions of Contracts
• Art. 5: Creation, Definition and Enforcement of Contractual Obligations

Text

§ 5-335. Limitation of reimbursement and subrogation claims in\npersonal injury and wrongful death actions. (a) When a person settles a\nclaim, whether in litigation or otherwise, against one or more other\npersons for personal injuries, medical, dental, or podiatric\nmalpractice, or wrongful death, it shall be conclusively presumed that\nthe settlement does not include any compensation for the cost of health\ncare services, loss of earnings or other economic loss to the extent\nthose losses or expenses have been or are obligated to be paid or\nreimbursed by an insurer. By entering into any such settlement, a person\nshall not be deemed to have taken an action in derogation of any right\nof any insurer that paid or is obligated to pay those losses or\nexpenses; nor shall a person's entry into such settlement constitute a\nviolation of any contract between the person and such insurer.\n No person entering into such a settlement shall be subject to a\nsubrogation claim or claim for reimbursement by an insurer and an\ninsurer shall have no lien or right of subrogation or reimbursement\nagainst any such settling person or any other party to such a\nsettlement, with respect to those losses or expenses that have been or\nare obligated to be paid or reimbursed by said insurer.\n (b) This section shall not apply to a subrogation claim for recovery\nof additional first-party benefits provided pursuant to article\nfifty-one of the insurance law. The term "additional first-party\nbenefits", as used in this subdivision, shall have the same meaning\ngiven it in section 65-1.3 of title 11 of the codes, rules and\nregulations of the state of New York as of the effective date of this\nstatute.\n (c) This section shall not apply to a subrogation or reimbursement\nclaim for recovery of benefits provided by Medicare or Medicaid,\nspecifically authorized pursuant to article fifty-one of the insurance\nlaw, or pursuant to a policy of insurance or an insurance contract\nproviding workers' compensation benefits.\n