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).

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

1-14 lien upon the total amount 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

2-5 otherwise. The provisions of this subsection do not grant to an injured

2-6 employee any right of action in tort to recover damages from his employer

2-7 for his injury.

2-8 2. When an employee receives an injury for which compensation is

2-9 payable pursuant to the provisions of chapters 616A to 616D, inclusive, of

2-10 NRS and which was caused under circumstances creating a legal liability in

2-11 some person, other than the employer or a person in the same employ, to

2-12 pay damages in respect thereof:

2-13 (a) The injured employee, or in case of death his dependents, may take

2-14 proceedings against that person to recover damages, but the amount of the

2-15 compensation the injured employee or his dependents are entitled to

2-16 receive pursuant to the provisions of chapters 616A to 616D, inclusive, of

2-17 NRS, including any future compensation, must be reduced by the amount of

2-18 the damages recovered, notwithstanding any act or omission of the

2-19 employer or a person in the same employ which was a direct or proximate

2-20 cause of the employee’s injury.

2-21 (b) If the injured employee, or in case of death his dependents, receive

2-22 compensation pursuant to the provisions of chapters 616A to 616D,

2-23 inclusive, of NRS, the insurer, or in case of claims involving the uninsured

2-24 employers’ claim fund or a subsequent injury fund the administrator, has a

2-25 right of action against the person so liable to pay damages and is

2-26 subrogated to the rights of the injured employee or of his dependents to

2-27 recover therefor.

2-28 3. When an injured employee incurs an injury for which compensation

2-29 is payable pursuant to the provisions of chapters 616A to 616D, inclusive,

2-30 of NRS and which was caused under circumstances entitling him, or in the

2-31 case of death his dependents, to receive proceeds under his employer’s

2-32 policy of uninsured or underinsured vehicle coverage:

2-33 (a) The injured employee, or in the case of death his dependents, may

2-34 take proceedings to recover those proceeds, but the amount of

2-35 compensation the injured employee or his dependents are entitled to

2-36 receive pursuant to the provisions of chapters 616A to 616D, inclusive, of

2-37 NRS, including any future compensation, must be reduced by the amount of

2-38 proceeds received.

2-39 (b) If an injured employee, or in the case of death his dependents,

2-40 receive compensation pursuant to the provisions of chapters 616A to 616D,

2-41 inclusive, of NRS, the insurer, or in the case of claims involving the

2-42 uninsured employers’ claim fund or a subsequent injury fund the

2-43 administrator, is subrogated to the rights of the injured employee or his

3-1 dependents to recover proceeds under the employer’s policy of uninsured

3-2 or underinsured vehicle coverage. The insurer and the administrator are not

3-3 subrogated to the rights of an injured employee or his dependents under a

3-4 policy of uninsured or underinsured vehicle coverage purchased by the

3-5 employee.

3-6 4. In any action or proceedings taken by the insurer or the

3-7 administrator pursuant to this section, evidence of the amount of

3-8 compensation, accident benefits and other expenditures which the insurer,

3-9 the uninsured employers’ claim fund or a subsequent injury fund have paid

3-10 or become obligated to pay by reason of the injury or death of the employee

3-11 is admissible. If in such action or proceedings the insurer or the

3-12 administrator recovers more than those amounts, the excess must be paid to

3-13 the injured employee or his dependents.

3-14 5. In any case where the insurer or the administrator is subrogated to

3-15 the rights of the injured employee or of his dependents as provided in

3-16 subsection 2 or 3, the insurer or the administrator has a lien upon the total

3-17 proceeds of any recovery from some person other than the employer,

3-18 whether the proceeds of such recovery are by way of judgment, settlement

3-19 or otherwise. The injured employee, or in the case of his death his

3-20 dependents, are not entitled to double recovery for the same injury,

3-21 notwithstanding any act or omission of the employer or a person in the

3-22 same employ which was a direct or proximate cause of the employee’s

3-23 injury.

3-24 6. The lien provided for [under] pursuant to subsection 1 or 5 includes

3-25 the total compensation expenditure incurred by the insurer, the uninsured

3-26 employers’ claim fund or a subsequent injury fund for the injured employee

3-27 and his dependents.

3-28 7. An injured employee, or in the case of death his dependents, or the

3-29 attorney or representative of the injured employee or his dependents,

3-30 shall notify the insurer, or in the case of claims involving the uninsured

3-31 employers’ claim fund or a subsequent injury fund the administrator, in

3-32 writing before initiating a proceeding or action pursuant to this section.

3-33 8. Within 15 days after the date of recovery by way of actual receipt of

3-34 the proceeds of the judgment, settlement or otherwise:

3-35 (a) The injured employee or his dependents, or the attorney or

3-36 representative of the injured employee or his dependents; and

3-37 (b) The third-party insurer,

3-38 shall notify the insurer, or in the case of claims involving the uninsured

3-39 employers’ claim fund or a subsequent injury fund the administrator, of the

3-40 recovery and pay to the insurer or the administrator, respectively, the

3-41 amount due [under] pursuant to this section together with an itemized

3-42 statement showing the distribution of the total recovery. The attorney or

3-43 representative of the injured employee or his dependents and the third-party

4-1 insurer are jointly and severally liable for any amount to which an insurer is

4-2 entitled pursuant to this section if the attorney, representative or third-party

4-3 insurer has knowledge of the lien provided for in this section.

4-4 9. An insurer shall not sell its lien to a third-party insurer unless the

4-5 injured employee or his dependents, or the attorney or representative of the

4-6 injured employee or his dependents, refuses to provide to the insurer

4-7 information concerning the action against the third party.

4-8 10. In any trial of an action by the injured employee, or in the case of

4-9 his death by his dependents, against a person other than the employer or a

4-10 person in the same employ, the jury must receive proof of the amount of all

4-11 payments made or to be made by the insurer or the administrator. The court

4-12 shall instruct the jury substantially as follows:

4-13 Payment of workmen’s compensation benefits by the insurer, or in

4-14 the case of claims involving the uninsured employers’ claim fund or a

4-15 subsequent injury fund the administrator, is based upon the fact that a

4-16 compensable industrial accident occurred, and does not depend upon

4-17 blame or fault. If the plaintiff does not obtain a judgment in his favor

4-18 in this case, he is not required to repay his employer, the insurer or the

4-19 administrator any amount paid to him or paid on his behalf by his

4-20 employer, the insurer or the administrator.

4-21 If you decide that the plaintiff is entitled to judgment against the

4-22 defendant, you shall find his damages in accordance with the court’s

4-23 instructions on damages and return your verdict in the plaintiff’s favor

4-24 in the amount so found without deducting the amount of any

4-25 compensation benefits paid to or for the plaintiff. The law provides a

4-26 means by which any compensation benefits will be repaid from your

4-27 award.

4-28 11. For the purposes of calculating an employer’s premium, the

4-29 employer’s account with the system must be credited with an amount equal

4-30 to that recovered by the system from a third party pursuant to this section,

4-31 less the system’s share of the expenses of litigation incurred in obtaining

4-32 the recovery, except that the total credit must not exceed the amount of

4-33 compensation actually paid or reserved by the system on the injured

4-34 employee’s claim.

4-35 12. As used in this section, "third-party insurer" means an insurer that

4-36 issued to a third party who is liable for damages pursuant to subsection 2, a

4-37 policy of liability insurance the proceeds of which are recoverable pursuant

4-38 to this section. The term includes an insurer that issued to an employer a

4-39 policy of uninsured or underinsured vehicle coverage.