H-670                _______________________________________________

                                                   HOUSE BILL NO. 2219

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Representative Cole

Read first time 4/4/89 and referred to Committee on Commerce & Labor.

AN ACT Relating to third-party recoveries for injuries covered by industrial insurance; and amending RCW 51.24.030.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 1, chapter 85, Laws of 1977 ex. sess. as last amended by section 1701, chapter 212, Laws of 1987 and RCW 51.24.030 are each amended to read as follows:

          (1) If a third person, not in a worker's same employ, is or may become liable to pay damages on account of a worker's injury for which benefits and compensation are provided under this title, the injured worker or beneficiary may elect to seek damages from the third person.

          (2) In every action brought under this section, the plaintiff shall give notice to the department or self-insurer when the action is filed.  The department or self-insurer may file a notice of statutory interest in recovery.  When such notice has been filed by the department or self-insurer, the parties shall thereafter serve copies of all notices, motions, pleadings, and other process on the department or self-insurer.  The department or self-insurer may then intervene as a party in the action to protect its statutory interest in recovery.

          (3) For the purposes of this chapter, "injury" shall include any physical or mental condition, disease, ailment or loss, including death, for which compensation and benefits are paid or payable under this title.

          (4) For liens accruing after the effective date of this act, damages recoverable by a worker or beneficiary pursuant to the underinsured motorist coverage of an insurance policy shall be subject to this chapter only if the ((owner of the policy is the employer of the injured worker)) underinsured motorist coverage is paid for or purchased by someone other than the worker or beneficiary.

(5) For liens accruing after the effective date of this act, other than damages recoverable pursuant to underinsured motorist coverage, no lien shall be asserted by the department or a self-insurer against contract recoveries made by a worker or beneficiary.