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Detailed Answer

1. Identify the Lien Rights

Under Nevada law, a workers’ compensation insurer that pays benefits has a lien on any third-party personal injury claim by the injured worker. This lien secures recovery of compensation and medical benefits paid. See NRS 616C.015.

2. Provide Timely Notice of the Third-Party Claim

The injured worker must notify the workers’ compensation insurer in writing within 10 days after filing a third-party lawsuit or settlement demand. Failing to notify on time may jeopardize the insurer’s lien rights.

3. Obtain an Itemized Lien Statement

Request a detailed accounting of all benefits paid by the insurer. Accurate records help you assess the lien’s validity and amount. NRS 616C.040 governs allocation of expenses and fees. See NRS 616C.040.

4. Negotiate or Challenge the Lien Amount

Negotiate with the insurer over the lien amount and any allocable attorney fees. If you dispute the lien, you may petition the district court to determine its reasonableness.

5. Resolve the Lien Through Settlement or Court Order

In most cases, parties reach a stipulation that allocates a portion of the recovery to satisfy the lien. The court then issues an order approving the net settlement, after deducting the lien and approved costs.

Helpful Hints

• Keep detailed records of all medical treatments and benefits paid.
• Notify the insurer in writing as soon as you file a third-party claim.
• Obtain a comprehensive lien statement before settlement talks.
• Consider mediation to resolve lien disputes efficiently.
• Review Nevada’s workers’ compensation statutes on the legislative website.