The bill addresses an insurer's right to subrogation and reimbursement for medical and hospital benefits, specifically limiting its applicability to a maximum of $5,000 in benefits. It establishes the legislative intent to clarify the insurer's rights when a recipient of benefits recovers damages through tort, allowing the insurer to seek reimbursement from the recovery amount. The bill amends existing law to include provisions that an insurer shall have a lien on the recovery to the extent of its benefit payments and grants the insurer the right of subrogation if the recipient does not pursue recovery against a liable third party.

Additionally, the bill removes the requirement that an insurer must issue a joint check to both the injured party and their insurance company as a condition for settlement or payment. It also clarifies that the common law doctrine requiring a party to be made whole before an insurer can be reimbursed does not apply in this context. Furthermore, the bill specifies that it does not modify or abrogate rights and obligations under the Workers' Compensation Law.