St. Paul Fire & Marine Insurance v. Employers Insurance Co. of Nevada

Summary

The Nevada Supreme Court considered whether workers’ compensation insurers have an independent statutory right to seek subrogation against employer-provided uninsured/underinsured motorist coverage. The court held that NRS 616C.215(3) grants such an independent right of action, but that the UM/UIM insurer may enforce policy exclusions and limitations restricting recovery by workers’ compensation insurers. The court affirmed in part, reversed in part, and remanded.

Holdings

1. NRS 616C.215(3) grants a workers' compensation insurer an independent right of action to seek subrogation against UM/UIM coverage purchased by an employer, regardless of whether the injured employee has made a claim against that coverage.
2. A UM/UIM insurer may restrict a workers' compensation insurer's subrogation recovery through policy provisions that exclude payments benefiting workers' compensation insurers and prevent duplicate payment for elements of loss already covered by workers' compensation.

Questions Presented

1. Whether NRS 616C.215(3) gives a workers' compensation insurer an independent right of action to subrogate against UM/UIM coverage purchased by an employer, even when the injured employee has not made a UM/UIM claim.
2. Whether an employer's UM/UIM insurer may enforce policy provisions excluding payments benefiting a workers' compensation insurer and limiting duplicate recovery for elements of loss already covered by workers' compensation.
3. Whether the 1993 amendments to NRS 616C.215 displaced the rule in Continental Casualty Co. v. Riveras permitting offset or restricted UM/UIM coverage.

Disposition

reversed_and_remanded