Senate Bill No. 64–Committee on Commerce and Labor
Prefiled January 29, 1999
(On Behalf of Legislative Committee on Workers’ Compensation)
____________
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
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:
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Section 1. NRS 616C.215 is hereby amended to read as follows: 616C.215 1. If an injured employee or, in the event of his death, his1-3
dependents, bring an action in tort against his employer to recover payment1-4
for an injury which is compensable1-6
notwithstanding the provisions of NRS 616A.020, receive payment from1-7
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 by1-11
the amount paid by the employer.1-12
(b) The insurer, or in the case of claims involving the uninsured1-13
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 or2-1
his dependents receive compensation pursuant to the provisions of chapters2-2
616A to 616D, inclusive, of NRS.2-3
This subsection is applicable whether the money paid to the employee or2-4
his dependents by the employer is classified as a gift, a settlement or otherwise. The provisions of this subsection do not grant to an injured2-5
employee any right of action in tort to recover damages from his employerfor his injury.
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2. When an employee receives an injury for which compensation ispayable pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS and which was caused
2-7 under circumstances creating a legal liability insome person, other than the employer or a person in the same employ, to
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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 thecompensation the injured employee or his dependents are entitled to receive pursuant to the provisions
2-10 of chapters 616A to 616D, inclusive, ofNRS, including any future compensation, must be reduced by the amount of the damages recovered,
2-11 notwithstanding any act or omission of theemployer or a person in the same employ which was a direct or proximate
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cause of the employee’s injury.2-13
(b) If the injured employee, or in case of death his dependents, receivecompensation pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS, the insurer, or in
2-14 case of claims involving the uninsuredemployers’ 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 issubrogated to the rights of the injured employee or of his dependents to
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recover therefor.3. When an injured employee incurs an injury for which compensation
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is payable pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS and which was caused under circumstances entitling him, or in the2-18
case of death his dependents, to receive proceeds under his employer’spolicy of uninsured or underinsured vehicle coverage:
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(a) The injured employee, or in the case of death his dependents, may take proceedings to recover those proceeds, but the amount of2-20
compensation the injured employee or his dependents are entitled to receive pursuant to the 2-21 provisions of chapters 616A to 616D, inclusive, ofNRS, including any future compensation, must be reduced by the amount of
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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
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uninsured employers’ claim fund or a subsequent injury fund the administrator, is subrogated to the rights of the injured employee or hisdependents to recover proceeds under the employer’s policy of uninsured
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or underinsured vehicle coverage. The insurer and the administrator are not subrogated to the rights of an injured employee or his dependents under a3-2
policy of uninsured or underinsured vehicle coverage purchased by theemployee.
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4. In any action or proceedings taken by the insurer or theadministrator pursuant to this section, evidence of the amount of
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compensation, accident benefits and other expenditures which the insurer, the uninsured employers’ 3-5 claim fund or a subsequent injury fund have paidor 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 theadministrator recovers more than those amounts, the excess must be paid to
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the injured employee or his dependents.5. In any case where the insurer or the administrator is subrogated to
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the rights of the injured employee or of his dependents as provided insubsection 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 hisdependents, are not entitled to double recovery for the same injury, notwithstanding any act or omission
3-11 of the employer or a person in thesame employ which was a direct or proximate cause of the employee’s
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injury.3-13
6. The lien provided for3-14
employers’ claim fund or a subsequent injury fund for the injured employeeand his dependents.
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7. An injured employee, or in the case of death his dependents, or theattorney or representative of the injured employee or his dependents,
shall notify the insurer, or in the 3-16 case of claims involving the uninsuredemployers’ claim fund or a subsequent injury fund the administrator, in
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writing before initiating a proceeding or action pursuant to this section.8.
Before the attorney or representative of the injured employee or3-18
his dependents initiates a proceeding or action pursuant to this section on the behalf of the injured employee or his dependents, he shall notify the3-19
injured employee or his dependents in writing of:(a) The right of the insurer, the uninsured employers’ claim fund or a
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subsequent injury fund to recover on its lien;(b) The probable amount of settlement; and
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(c) The probable amount the injured employee or his dependents is3-22
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 ofthe proceeds of the judgment, settlement or otherwise:
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(a) The injured employee or his dependents, or the attorney orrepresentative of the injured employee or his dependents; and
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(b) The third-party insurer,shall notify the insurer, or in the case of claims involving the uninsured
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employers’ claim fund or a subsequent injury fund the administrator, of the recovery and pay to the insurer or the administrator, respectively, the3-27
amount due3-28
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 is3-29
entitled pursuant to this section if the attorney, representative or third-party3-30
insurer has knowledge of the lien provided for in this section.
the injured employee or his dependents, refuses to provide to the insurer
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information concerning the action against the third party.
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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 the3-34
amount of all payments made or to be made by the insurer or theadministrator. The court shall instruct the jury substantially as follows:
Payment of workmen’s compensation benefits by the insurer, or in
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the case of claims involving the uninsured employers’ claim fund ora subsequent injury fund the administrator, is based upon the fact that a compensable industrial accident
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employer, the insurer or the administrator any amount paid to him orpaid on his behalf by his employer, the insurer or the administrator.
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If you decide that the plaintiff is entitled to judgment against thedefendant, you shall find his damages in accordance with the court’s
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instructions on damages and return your verdict in the plaintiff’sfavor in the amount so found without deducting the amount of any
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compensation benefits paid to or for the plaintiff. The law providesa means by which any compensation benefits will be repaid from
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your award.3-43
employer’s account with the system must be credited with an amount equal
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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
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the recovery, except that the total credit must not exceed the amount of3-46
compensation actually paid or reserved by the system on the injuredemployee’s claim.
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that issued to a third party who is liable for damages pursuant to subsection
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2, a policy of liability insurance the proceeds of which are recoverablepursuant to this section. The term includes an insurer that issued to an
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employer a policy of uninsured or underinsured vehicle coverage.~