N.Y. General Obligations Law Section 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.

Source: Section 5-335 — Limitation of reimbursement and subrogation claims in personal injury and wrongful death actions, https://www.­nysenate.­gov/legislation/laws/GOB/5-335 (updated Sep. 22, 2014; accessed Apr. 20, 2024).

5‑301
Certain employment contracts void 5‑311
Certain agreements between husband and wife void 5‑321
Agreements exempting lessors from liability for negligence void and unenforceable 5‑322
Agreements exempting caterers and catering establishments from liability for negligence void and unenforceable 5‑322.1
Agreements exempting owners and contractors from liability for negligence void and unenforceable 5‑322.2
Contents of certain construction contracts 5‑322.3
Payment bonds to be filed 5‑323
Agreements exempting building service or maintenance contractors from liability for negligence void and unenforceable 5‑324
Agreements by owners, contractors, subcontractors or suppliers to indemnify architects, engineers and surveyors from liability caused by ... 5‑325
Garages and parking places 5‑326
Agreements exempting pools, gymnasiums, places of public amusement or recreation and similar establishments from liability for negligence... 5‑327
Consumers’ right to recover attorney’s fees in actions arising out of consumer contracts 5‑328
Processing fee by holder of dishonored check 5‑331
Certain covenants and restrictions in conveyances and other agreements affecting real property void as against public policy 5‑332
Unsolicited and voluntarily sent merchandise deemed unconditional gift 5‑333
Validity of oil, gas or mineral land leases 5‑334
Option or right to acquire interest in property 5‑335
Limitation of reimbursement and subrogation claims in personal injury and wrongful death actions 5‑336
Nondisclosure agreements 5‑337
Agreements requiring contractees to waive their rights in relation to expressing certain opinions about contractors void and unenforceable
Green check means up to date. Up to date

Accessed:
Apr. 20, 2024

Last modified:
Sep. 22, 2014

§ 5-335’s source at nysenate​.gov

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