Opinion ID: 1861326
Heading Depth: 2
Heading Rank: 6

Heading: insurer's future credit

Text: By statute, the dollar amount actually received by the employee, his dependents or personal representative is treated as a credit against any future compensation the employer or insurer would have been required to pay but for the third-party recovery. Therefore, the total recovery less the insurer's reimbursement and the employee's share of cost of recovery equals the insurer's future credit: Gross Recovery $120,000.00 Insurer's Reimbursement - 27,184.03 Employee's Share of Cost of Recovery - 31,562.98 ___________ Insurer's Future Credit $ 61,252.99 The cost of recovery amount deducted in the example above does not include the insurer's share of cost of reimbursement recovery (see III, supra) since that dollar amount is paid out of the insurer's reimbursement. The inclusion of that sum of $9,244.19 in the cost of recovery subtraction would amount to a double subtraction of the insurer's share of cost of reimbursement recovery. Such a procedure would disadvantage the insurer by further reducing the amount of the insurer's future credit, thereby resulting in earlier exhaustion of the future credit and earlier resumption of the insurer's liability to pay compensation benefits.