Lien
A legal claim against a settlement or award for reimbursement, such as a workers comp carrier's lien on a third party recovery.
When a worker collects from a negligent third party after WC paid benefits, the comp carrier may assert a lien to recover some payments. Rules vary widely by state (full, proportional, or reduced by attorney fees).
Examples
WC pays $50,000 medical; worker sues a negligent manufacturer and wins $200,000; carrier recovers a statutory share via lien.
Common Misconceptions
Settling third party cases without protecting the lien exposes attorneys to carrier claims. Ignoring Medicare future medical set-asides in related settlements.
Related Terms
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Back to Glossary Claims Pages AcademyThis definition is provided for informational and educational purposes. Insurance terminology may vary by jurisdiction, policy, and context. Consult a licensed professional for guidance specific to your situation.
