Senate Bill No. 64–Committee on Commerce and Labor

Prefiled January 29, 1999

(On Behalf of Legislative Committee on Workers’ Compensation)

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Referred to Committee on Commerce and Labor

 

SUMMARY—Requires attorney of injured worker to notify injured worker of certain

information concerning action for damages for industrial injury.

(BDR 53-1077)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to industrial insurance; requiring the attorney or representative of an injured worker to notify the injured worker of certain information concerning an action

for damages for an industrial injury; and providing other matters properly

relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. NRS 616C.215 is hereby amended to read as follows:

1-2 616C.215 1. If an injured employee or, in the event of his death, his

1-3 dependents, bring an action in tort against his employer to recover payment

1-4 for an injury which is compensable [under] pursuant to the provisions of chapters 616A to 616D, 1-5 inclusive, or chapter 617 of NRS and,

1-6 notwithstanding the provisions of NRS 616A.020, receive payment from

1-7 the employer for that injury:

1-8 (a) The amount of compensation the injured employee or his dependents are entitled to receive 1-9 pursuant to the provisions of chapters 616A to 616D,

1-10 inclusive, of NRS, including any future compensation, must be reduced by

1-11 the amount paid by the employer.

1-12 (b) The insurer, or in the case of claims involving the uninsured

1-13 employer’s claim fund or a subsequent injury fund the administrator, has a lien upon the total amount 1-14 paid by the employer if the injured employee or

2-1 his dependents receive compensation pursuant to the provisions of chapters

2-2 616A to 616D, inclusive, of NRS.

2-3 This subsection is applicable whether the money paid to the employee or

2-4 his dependents by the employer is classified as a gift, a settlement or otherwise. The provisions of this subsection do not grant to an injured

2-5 employee any right of action in tort to recover damages from his employer

for his injury.

2-6 2. When an employee receives an injury for which compensation is

payable pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS and which was caused 2-7 under circumstances creating a legal liability in

some person, other than the employer or a person in the same employ, to

2-8 pay damages in respect thereof:

(a) The injured employee, or in case of death his dependents, may take proceedings against that 2-9 person to recover damages, but the amount of the

compensation the injured employee or his dependents are entitled to receive pursuant to the provisions 2-10 of chapters 616A to 616D, inclusive, of

NRS, including any future compensation, must be reduced by the amount of the damages recovered, 2-11 notwithstanding any act or omission of the

employer or a person in the same employ which was a direct or proximate

2-12 cause of the employee’s injury.

2-13 (b) If the injured employee, or in case of death his dependents, receive

compensation pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS, the insurer, or in 2-14 case of claims involving the uninsured

employers’ claim fund or a subsequent injury fund the administrator, has a right of action against the 2-15 person so liable to pay damages and is

subrogated to the rights of the injured employee or of his dependents to

2-16 recover therefor.

3. When an injured employee incurs an injury for which compensation

2-17 is payable pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS and which was caused under circumstances entitling him, or in the

2-18 case of death his dependents, to receive proceeds under his employer’s

policy of uninsured or underinsured vehicle coverage:

2-19 (a) The injured employee, or in the case of death his dependents, may take proceedings to recover those proceeds, but the amount of

2-20 compensation the injured employee or his dependents are entitled to receive pursuant to the 2-21 provisions of chapters 616A to 616D, inclusive, of

NRS, including any future compensation, must be reduced by the amount of

2-22 proceeds received.

(b) If an injured employee, or in the case of death his dependents, receive compensation pursuant to 2-23 the provisions of chapters 616A to 616D,

inclusive, of NRS, the insurer, or in the case of claims involving the

2-24 uninsured employers’ claim fund or a subsequent injury fund the administrator, is subrogated to the rights of the injured employee or his

dependents to recover proceeds under the employer’s policy of uninsured

3-1 or underinsured vehicle coverage. The insurer and the administrator are not subrogated to the rights of an injured employee or his dependents under a

3-2 policy of uninsured or underinsured vehicle coverage purchased by the

employee.

3-3 4. In any action or proceedings taken by the insurer or the

administrator pursuant to this section, evidence of the amount of

3-4 compensation, accident benefits and other expenditures which the insurer, the uninsured employers’ 3-5 claim fund or a subsequent injury fund have paid

or become obligated to pay by reason of the injury or death of the employee is admissible. If in such 3-6 action or proceedings the insurer or the

administrator recovers more than those amounts, the excess must be paid to

3-7 the injured employee or his dependents.

5. In any case where the insurer or the administrator is subrogated to

3-8 the rights of the injured employee or of his dependents as provided in

subsection 2 or 3, the insurer or the administrator has a lien upon the total proceeds of any recovery 3-9 from some person other than the employer,

whether the proceeds of such recovery are by way of judgment, settlement or otherwise. The injured 3-10 employee, or in the case of his death his

dependents, are not entitled to double recovery for the same injury, notwithstanding any act or omission 3-11 of the employer or a person in the

same employ which was a direct or proximate cause of the employee’s

3-12 injury.

3-13 6. The lien provided for [under] pursuant to subsection 1 or 5 includes the total compensation expenditure incurred by the insurer, the uninsured

3-14 employers’ claim fund or a subsequent injury fund for the injured employee

and his dependents.

3-15 7. An injured employee, or in the case of death his dependents, or the

attorney or representative of the injured employee or his dependents, shall notify the insurer, or in the 3-16 case of claims involving the uninsured

employers’ claim fund or a subsequent injury fund the administrator, in

3-17 writing before initiating a proceeding or action pursuant to this section.

8. Before the attorney or representative of the injured employee or

3-18 his dependents initiates a proceeding or action pursuant to this section on the behalf of the injured employee or his dependents, he shall notify the

3-19 injured employee or his dependents in writing of:

(a) The right of the insurer, the uninsured employers’ claim fund or a

3-20 subsequent injury fund to recover on its lien;

(b) The probable amount of settlement; and

3-21 (c) The probable amount the injured employee or his dependents is

3-22 likely to recover after paying attorney’s fees, costs and the lien described in paragraph (a).

3-23 9. Within 15 days after the date of recovery by way of actual receipt of

the proceeds of the judgment, settlement or otherwise:

3-24 (a) The injured employee or his dependents, or the attorney or

representative of the injured employee or his dependents; and

3-25 (b) The third-party insurer,

shall notify the insurer, or in the case of claims involving the uninsured

3-26 employers’ claim fund or a subsequent injury fund the administrator, of the recovery and pay to the insurer or the administrator, respectively, the

3-27 amount due [under] pursuant to this section together with an itemized statement showing the distribution of the total recovery. The attorney or

3-28 representative of the injured employee or his dependents and the third-party insurer are jointly and severally liable for any amount to which an insurer is

3-29 entitled pursuant to this section if the attorney, representative or third-party

3-30 insurer has knowledge of the lien provided for in this section.

[9.] 10. An insurer shall not sell its lien to a third-party insurer unless the injured employee or his 3-31 dependents, or the attorney or representative of

the injured employee or his dependents, refuses to provide to the insurer

3-32 information concerning the action against the third party.

[10.] 11. In any trial of an action by the injured employee, or in the

3-33 case of his death by his dependents, against a person other than the employer or a person in the same employ, the jury must receive proof of the

3-34 amount of all payments made or to be made by the insurer or the

administrator. The court shall instruct the jury substantially as follows:

Payment of workmen’s compensation benefits by the insurer, or in

3-35 the case of claims involving the uninsured employers’ claim fund or

a subsequent injury fund the administrator, is based upon the fact that a compensable industrial accident 3-36 occurred, and does not

depend upon blame or fault. If the plaintiff does not obtain a judgment in his favor in this case, he is not 3-37 required to repay his

3-38 employer, the insurer or the administrator any amount paid to him or

paid on his behalf by his employer, the insurer or the administrator.

3-39 If you decide that the plaintiff is entitled to judgment against the

defendant, you shall find his damages in accordance with the court’s

3-40 instructions on damages and return your verdict in the plaintiff’s

favor in the amount so found without deducting the amount of any

3-41 compensation benefits paid to or for the plaintiff. The law provides

a means by which any compensation benefits will be repaid from

3-42 your award.

3-43 [11.] 12. For the purposes of calculating an employer’s premium, the

employer’s account with the system must be credited with an amount equal

3-44 to that recovered by the system from a third party pursuant to this section,

less the system’s share of the expenses of litigation incurred in obtaining

3-45 the recovery, except that the total credit must not exceed the amount of

3-46 compensation actually paid or reserved by the system on the injured

employee’s claim.

3-47 [12.] 13. As used in this section, "third-party insurer" means an insurer

that issued to a third party who is liable for damages pursuant to subsection

3-48 2, a policy of liability insurance the proceeds of which are recoverable

pursuant to this section. The term includes an insurer that issued to an

3-49 employer a policy of uninsured or underinsured vehicle coverage.

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