N.Y. General Obligations Law § 5-335: Limitation of reimbursement and subrogation claims in personal injury and wrongful death actions

§ 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.