Short and Long-Term Disability Payments including WCL §227 Liens
Under New York law, there are many types of disability insurance, some are statutory with statutorily protected rights of recovery, some provide for the right of subrogation, and others may be pursued under the doctrine of equitable subrogation. Having specific knowledge of New York law benefits the insurance provider in maximizing recovery, as follows:
Short-Term Disability Payments under WCL §227
Under New York’s mandatory short-term disability benefits law, WCL §227 provides the statutory right to recovery for benefits paid as a result of automobile accidents not involving employment. Through the interplay with inter-company loss transfer arbitration provisions of the Insurance Law, the short-term disability provider can maximize recovery through loss transfer arbitration.
Through the interplay with §5104(b) of the Insurance Law, the short-term disability provider can recover from “non-covered” persons under the No-Fault Law, either by lien or independent action, benefits paid as mandatory short-term disability under WCL §227.
The use of intervention to create the right of a short-term disability provider to intervene in an existing claimant’s tort action to protect the provider’s right under §5104(b) to recover from a third-party tortfeasor, benefits paid as no-fault benefits.
The use of the statutory lien and claim rights provided by §5104(b) to obtain reimbursement of the §227 lien from the claimant, his/her attorney, the tortfeasor and the tortfeasor’s insurers where the third-party action is resolved but the short-term disability provider’s lien is not reimbursed.
Subrogation of Short and Long-Term Disability Payments
The use of the plain language of the disability policy to determine whether the right of subrogation exists, or alternatively whether reimbursement may be pursued under the doctrine of equitable subrogation, from a negligent third-party tortfeasor.
The use of intervention to create the right of a disability provider to intervene in an existing claimant’s tort action to protect the provider’s right under the policy to recover, through subrogation, benefits paid as disability benefits.