Sec. 38a-470. (Formerly Sec. 38-174n). Lien on workers' compensation awards for insurers. Notice of lien.
Sec. 38a-470. (Formerly Sec. 38-174n). Lien on workers' compensation
awards for insurers. Notice of lien. (a) For purposes of this section, "controverted
claim" means any claim in which compensation is denied either in whole or in part by
the workers' compensation carrier or the employer, if self-insured.
(b) Any insurer, hospital or medical service corporation, health care center or employee welfare benefit plan which furnished benefits or services under a health insurance
policy or a self-insured employee welfare benefit plan to any person suffering an injury
or illness covered by the Workers' Compensation Act has a lien on the proceeds of any
award or approval of any compromise made by a workers' compensation commissioner
less attorneys' fees approved by the district commissioner and reasonable costs related
to the proceeding, to the extent of benefits paid or services provided for the effects of
the injury or illness arising out of and in the course of employment as a result of a
controverted claim, provided such plan, policy or contract provides for reduction, exclusion, or coordination of benefits of the policy or plan on account of workers' compensation benefits.
(c) The lien shall arise at the time such benefits are paid or such services are rendered.
The person or entity furnishing such benefits or services shall serve written notice upon
the employee, the insurance company providing workers' compensation benefits or the
employer, if self-insured, and the workers' compensation commissioner for the district
in which the claim for workers' compensation has been filed, setting forth the nature
and extent of the lien allowable under subsection (b). The lien shall be effective against
any workers' compensation award made after the notice is received.
(d) The written notice shall be served upon the employee at his last-known address,
the insurance company at its principal place of business in this state or the employer, if
self-insured, at its principal place of business, and the workers' compensation commissioner, at the district office. Service shall be made to all parties by certified or registered
mail. The notice shall be in duplicate and shall contain, in addition to the information
set forth in subsection (c) of this section, the name of the injured or ill employee, the
name of the company providing workers' compensation benefits, the amount expended
and an estimate of the amount to be expended for benefits or services provided to such
injured or ill employee.
(e) The insurance company providing workers' compensation coverage or the employer, if self-insured, shall reimburse the insurance company, hospital or medical service corporation, health care center or employee welfare benefit plan providing benefits
or service directly, to the extent of any such lien. The receipt of such reimbursement by
such insurer, hospital or medical service corporation, health care center or employee
welfare benefit plan shall fully discharge such lien.
(f) The validity or amount of the lien may be contested by the workers' compensation carrier, the employer, if self-insured or the employee by bringing an action in the
superior court for the judicial district of Hartford or in the judicial district in which the
plaintiff resides. Such cases shall have the same privilege with respect to their assignment for trial as appeals from the workers' compensation review division but shall first
be claimed for the short calendar unless the court shall order the matter placed on the
trial list. An appeal may be taken from the decision of the Superior Court to the Appellate
Court in the same manner as is provided in section 51-197b. In any appeal in which one
of the parties is not represented by counsel and in which the party taking the appeal
does not claim the case for the short calendar or trial within a reasonable time after the
return day, the court may of its own motion dismiss the appeal, or the party ready to
proceed may move for nonsuit or default as appropriate. During the pendency of the
appeal any workers' compensation benefits due shall be paid into the court in accordance
with the rules relating to interpleader actions.
(P.A. 81-386, S. 1; June Sp. Sess. P.A. 83-29, S. 34, 82; P.A. 88-230, S. 1, 12; P.A. 90-98, S. 1, 2; 90-243, S. 69; P.A.
93-142, S. 4, 7, 8; P.A. 95-220, S. 4-6.)
History: June Sp. Sess. P.A. 83-29 deleted reference to supreme court and substituted appellate court in lieu thereof in
Subsec. (f); P.A. 88-230 replaced "judicial district of Hartford-New Britain" with "judicial district of Hartford", effective
September 1, 1991; P.A. 90-98 changed the effective date of P.A. 88-230 from September 1, 1991, to September 1, 1993;
P.A. 90-243 added references to "health care center" and substituted reference to "health insurance policies" for reference
to various health, disability and accident policies; Sec. 38-174n transferred to Sec. 38a-470 in 1991; P.A. 93-142 changed
the effective date of P.A. 88-230 from September 1, 1993, to September 1, 1996, effective June 14, 1993; P.A. 95-220
changed the effective date of P.A. 88-230 from September 1, 1996, to September 1, 1998, effective July 1, 1995.
See Secs. 38a-199 to 38a-209, inclusive, re hospital service corporations.
See Secs. 38a-214 to 38a-225, inclusive, re medical service corporations.
Annotations to former section 38-174n:
Cited. 216 C. 815. Cited. 219 C. 439.
Cited. 22 CA 539; judgment reversed, see 219 C. 439.
Subsec. (b):
Cited. 217 C. 631.
Cited. 22 CA 27; judgment reversed, see 217 C. 631.
Annotations to present section:
Cited. 219 C. 439.
Subsec. (b):
Cited. 217 C. 631.