What is Lien?
A legal claim against a settlement or judgment that must be paid before the injured party receives their money, typically held by medical providers or insurers.
Understanding Lien
Liens ensure that those who provided treatment or paid bills get reimbursed from any recovery. Common liens include hospital liens, health insurance liens, Medicare/Medicaid liens, and workers' comp liens. Attorneys often negotiate liens down to maximize client recovery.
Examples
- 1Hospital lien for emergency treatment after accident
- 2Medicare lien for medical bills they paid
- 3Negotiating lien reduction before settlement distribution
Related Terms
Medical Lien
A legal claim that gives a healthcare provider the right to be repaid from a personal injury settlement or verdict for treatment they provided to an injured patient. The provider treats the patient now and gets paid later when the case resolves.
Letter of Protection (LOP)
A written agreement where a personal injury attorney promises to pay a healthcare provider from the client's eventual settlement or verdict, allowing the patient to receive medical treatment without paying out of pocket.
Subrogation
The right of an insurance company to pursue a third party who caused the loss to recover the amount paid on a claim.
Uninsured Motorist Coverage
Insurance coverage that protects you if you're injured by a driver who has no liability insurance or insufficient coverage to pay for your damages.
No-Fault Insurance
An auto insurance system where each driver's own insurance pays for their medical expenses and lost wages regardless of who caused the accident.
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