§ 5-335. Limitation of reimbursement and subrogation claims in
personal injury and wrongful death actions. (a) When a person settles a
claim, whether in litigation or otherwise, against one or more other
persons for personal injuries, medical, dental, or podiatric
malpractice, or wrongful death, it shall be conclusively presumed that
the settlement does not include any compensation for the cost of health
care services, loss of earnings or other economic loss to the extent
those losses or expenses have been or are obligated to be paid or
reimbursed by an insurer. By entering into any such settlement, a person
shall not be deemed to have taken an action in derogation of any right
of any insurer that paid or is obligated to pay those losses or
expenses; nor shall a person's entry into such settlement constitute a
violation of any contract between the person and such insurer.

No person entering into such a settlement shall be subject to a
subrogation claim or claim for reimbursement by an insurer and an
insurer shall have no lien or right of subrogation or reimbursement
against any such settling person or any other party to such a
settlement, with respect to those losses or expenses that have been or
are obligated to be paid or reimbursed by said insurer.

(b) This section shall not apply to a subrogation claim for recovery
of additional first-party benefits provided pursuant to article
fifty-one of the insurance law. The term "additional first-party
benefits", as used in this subdivision, shall have the same meaning
given it in section 65-1.3 of title 11 of the codes, rules and
regulations of the state of New York as of the effective date of this
statute.

(c) This section shall not apply to a subrogation or reimbursement
claim for recovery of benefits provided by Medicare or Medicaid,
specifically authorized pursuant to article fifty-one of the insurance
law, or pursuant to a policy of insurance or an insurance contract
providing workers' compensation benefits.