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AL HB497
Bill
Status
5/18/2023
Primary Sponsor
Mike Kirkland
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AI Summary
HB497 Summary
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Allows employers to seek reimbursement for workers' compensation obligations from uninsured or underinsured motorist (UIM) insurance coverage purchased by the employer when an employee is injured or killed in a work-related vehicle accident.
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Permits employers to credit damages recovered from UIM coverage against their workers' compensation liability to the employee, with any excess damages held in trust for the injured employee or dependents.
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Specifies that when an employee settles a claim with a third party, the employer's share of attorney fees shall exclude costs and expenses of the attorney.
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Maintains employer subrogation rights for medical and vocational benefits expended on behalf of the employee, with proportional reduction if any judgment is uncollectible in part.
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Takes effect on the first day of the third month following passage and approval by the Governor.
Legislative Description
Relating to workers' compensation; to amend Section 25-5-11, Code of Alabama 1975, to further provide for the employer's right of subrogation against uninsured and underinsured motorist insurance; and to specify that in a settlement of claims against a third party, the employer's share of the employee's attorney fees does not include costs or expenses.
Worker's Compensation, specifying the employer's right to subrogation
Last Action
Introduced and Referred to House Commerce and Small Business
5/18/2023