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- Alaska Statutes.
- Title 23. Labor and Workers' Compensation
- Chapter 30. Alaska Workers' Compensation Act
- Section 15. Compensation Where Third Persons Are Liable.
previous: Section 12
. Agreements in Regard to Claims.
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. Immunity For Third-Party Design Professional.
AS 23.30.015. Compensation Where Third Persons Are Liable.
- (a) If on account of disability or death for which compensation is payable under this chapter the person entitled to the
compensation believes that a third person other than the employer or a fellow employee is liable for damages, the
person need not elect whether to receive compensation or to recover damages from the third person.
- (b) Acceptance of compensation under an award in a compensation order filed by the board operates as an assignment to the
employer of all rights of the person entitled to compensation and the personal representative of a deceased employee to
recover damages from the third person unless the person or representative entitled to compensation commences an action
against the third person within one year after an award.
- (c) Payment of compensation into the second-injury fund as a result of death operates as an assignment to the employer of
all rights of the representative of the deceased to recover damages from the third person.
- (d) An employer under an assignment may either institute proceedings for the recovery of damages or may compromise with a
third person, either without or after instituting an action.
- (e) An amount recovered by the employer under an assignment, whether by action or compromise, shall be distributed as
- (1) the employer shall retain an amount equal to
- (A) the expenses incurred by the employer with respect to the action or compromise, including a reasonable attorney fee
determined by the board;
- (B) the cost of all benefits actually furnished by the employer under this chapter;
- (C) all amounts paid as compensation and second-injury fund payments, and if the employer is self-insured or uninsured,
all service fees paid under AS 23.05.067
- (D) the present value of all amounts payable later as compensation, computed from a schedule prepared by the board, and
the present value of the cost of all benefits to be furnished later under AS 23.30.095
as estimated by the board; the amounts so computed and estimated shall be retained by the employer as a trust fund to pay
compensation and the cost of benefits as they become due and to pay any finally remaining excess sum to the person
entitled to compensation or to the representative; and
- (2) the employer shall pay any excess to the person entitled to compensation or to the representative of that person.
- (f) Even if an employee, the employee's representative, or the employer brings an action or settles a claim against the
third person, the employer shall pay the benefits and compensation required by this chapter.
- (g) If the employee or the employee's representative recovers damages from the third person, the employee or
representative shall promptly pay to the employer the total amounts paid by the employer under (e)(1)(A) - (C) of this
section insofar as the recovery is sufficient after deducting all litigation costs and expenses. Any excess recovery by
the employee or representative shall be credited against any amount payable by the employer thereafter. If the employer
is allocated a percentage of fault under AS 09.17.080
, the amount due the employer under this subsection shall be reduced by an amount equal to the employer's equitable
share of damages assessed under AS 09.17.080
- (h) If compromise with a third person is made by the person entitled to compensation or the representative of that person
of an amount less than the compensation to which the person or representative would be entitled, the employer is liable
for compensation stated in (f) of this section only if the compromise is made with the employer's written approval.
- (i) If the employer is insured and the carrier has assumed the payment of compensation, the carrier shall be subrogated to
all the rights of the employer.
- (j) Notice of the commencement of an action against a third party shall be given to the division and to all interested
parties within 30 days.
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