Assembly Bill No. 290-Committee on Judiciary

March 19, 1997
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Referred to Committee on Judiciary

SUMMARY--Creates lien of hospital upon certain insurance coverage. (BDR 9-803)

FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.

EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.

AN ACT relating to liens of hospitals; creating a lien upon certain insurance coverage; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

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Section 1 NRS 108.590 is hereby amended to read as follows:
108.590 1. Whenever any person receives hospitalization on account of any injury, and he, or his personal representative after his death claims damages from the person responsible for causing the injury, the hospital has a lien upon any [sum] :
(a) Sum awarded to the injured person or his personal representative by judgment or obtained by a settlement or compromise ; or
(b) Payment due the person or his personal representative from any policy of insurance covering hospital or medical benefits against which that person or his personal representative has a contractual right to make a claim,
to the extent of the amount due the hospital for the reasonable value of the hospitalization rendered before the date of judgment, settlement [or compromise.] , compromise or payment.
2. The lien provided by this section is:
(a) Not valid against anyone coming under the provisions of chapters 616A to 616D, inclusive, of NRS.
(b) In addition to the lien provided by NRS 108.662.
Sec. 2 NRS 108.600 is hereby amended to read as follows:
108.600 1. No rights or claims for liens under NRS 108.590 to 108.660, inclusive, [shall be] are allowed for hospitalization rendered an injured person after a settlement has been effected by or on behalf of the party causing the injury.
2. No lien [shall apply or be] applies or is allowed against any sum incurred by the injured party for necessary [attorney] attorney's fees, costs and expenses incurred by the injured party in securing a settlement, compromise or payment, or recovering damages , by an action at law.
Sec. 3 NRS 108.610 is hereby amended to read as follows:
108.610 In order to perfect the lien, the hospital or the owner or operator thereof [shall:
1. Prior to] must:
1. Before the payment of any [moneys] money to the injured person or to his legal representative as compensation for injuries received, file a notice of lien, substantially in the form prescribed in NRS 108.620, containing an itemized statement of the amount claimed. The notice of lien [shall] must be filed with:
(a) The county recorder of the county wherein the hospital is located; and
(b) The county recorder of the county wherein the injury was suffered, if the injury was suffered in a county other than that wherein the hospital is located.
2. [Prior to] Before the date of judgment, settlement [or compromise,] , compromise or payment, serve a [certified] copy of the notice of lien by registered or certified mail upon the person, firm or corporation alleged to be responsible for causing the injury and alleged to be liable for damages on account thereof and from which damages are claimed.
3. [Prior to] Before the date of judgment, settlement [or compromise,] , compromise or payment, serve a [certified] copy of the notice of lien by registered or certified mail upon the insurance carrier, if known, which has insured against liability of the person, firm or corporation alleged to be responsible for causing the injury and alleged to be liable for damages on account thereof and from which damages are claimed.
4. Before the date of judgment, settlement, compromise or payment, serve a copy of the notice of lien by registered or certified mail upon the insurance carrier, if known, which has issued a policy of insurance covering hospital or medical benefits against which the injured person or his personal representative has a contractual right to make a claim.
Sec. 4 NRS 108.620 is hereby amended to read as follows:
108.620 The form of the notice required by NRS 108.610 must be substantially as follows:

Notice is hereby given that ................................ has rendered services in hospitalization for ................................, a person who was injured on the ................ day of .........., 19....., in the city of ................, county of ................................, on or about the .......... day of ................, 19......; and that ................................ (name of claimant) hereby claims a lien upon any money due or owing or any claim for compensation, damages, contribution, settlement or judgment from ................................, alleged to have caused the injuries, or any other person, corporation or association liable for the injury [.] , or any insurance carrier that has issued a policy of insurance covering hospital or medical benefits against which the injured person or his personal representative has a contractual right to make a claim. The hospitalization was rendered to the injured person between the .......... day of ................, 19....., and the .......... day of ................, 19.....

Itemized Statement

That 90 days have not elapsed since the termination of the hospitalization; that the claimant's demands for such care or service is in the sum of $................ and that no part thereof has been paid except $................; and that there is now due and owing and remaining unpaid of such sum, after deducting all credits and offsets, the sum of $................, in which amount lien is hereby claimed.
, Claimant.

State of Nevada }
}ss.
County of }

I, ................................, being first duly sworn, on oath say:
That I am ................................, named in the foregoing claim of lien; that I have read the same and know the contents thereof and believe the same to be true.

Subscribed and sworn to before me this ..... day of ........, 19...

Notary Public in and for the above-named county and state.
Sec. 5 NRS 108.650 is hereby amended to read as follows:
108.650 1. Any person or his insurer , or any insurance carrier that has issued a policy of insurance covering hospital or medical benefits against which an injured person or his personal representative has a contractual right to make a claim, who, after the receipt of a [certified] copy of the notice of lien pursuant to NRS 108.610, makes any payment to the injured person, his heirs, personal representatives or the attorney for any of them, as compensation for the injury suffered, without paying the hospital the reasonable value of hospitalization rendered to the injured person and claimed in its notice of lien or so much thereof as can be satisfied out of the money due under any final judgment, settlement [or compromise,] , compromise or payment, after paying the attorney's fees, costs and expenses incurred in connection therewith and any prior liens, is, for a period of 180 days after the date of that payment, liable to the hospital for the amount or part thereof which the hospital was entitled to receive. The hospital has, within that period, a cause of action or other claim for relief against the person or insurer making the payment, which may be prosecuted and maintained in any county wherein the notice of lien was filed.
2. If the hospital is publicly owned or not for profit, the person or his insurer shall make the payment to the hospital by issuing to the hospital a separate check or other negotiable instrument.

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