Detailed Answer
When you settle a personal injury claim after a workplace accident, your employer’s workers’ compensation insurer may hold a lien against your recovery to recoup benefits already paid. You must follow several steps to verify and satisfy that lien under South Carolina law (see SC Code Ann. § 42-1-560).
1. Request a Lien Statement
After you negotiate a settlement, ask the insurer for a written lien statement. This document must list the total benefits paid, dates of payment, and allowable medical expenses. Confirm the statement’s accuracy against your records.
2. Calculate the Lien Amount
South Carolina law allows the insurer to recover only the net amount paid, excluding any benefits you must repay under other liens or statutory offsets. Review the insurer’s calculation. If you dispute the amount, gather billing statements and adjust the figure in writing.
3. Negotiate With the Insurer
Reach an agreement on the lien amount before distribution. You can propose a lump-sum payment or a percentage of the settlement. Put all terms in writing. Keep copies for your file.
4. Obtain a Lien Waiver or Satisfaction
Once you pay the agreed amount, ask the insurer for a signed lien waiver or satisfaction letter. This document confirms that the insurer has released its right to further recovery from the settlement proceeds.
5. File a Stipulation or Order With the Court
If a lawsuit remains pending or you used court funds to hold the settlement, file a joint stipulation or proposed order showing the lien’s full satisfaction. Ask the judge to approve and enter the order to ensure clear title to your remaining proceeds.
Disclaimer
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Helpful Hints
- Keep detailed records of all workers’ compensation benefits you received.
- Obtain lien statements in writing and review them promptly.
- Document all negotiations with the insurer in email or letters.
- Secure a formal lien waiver before disbursing settlement funds.
- File necessary documents with the court to avoid future claims.