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Abstract

Is an insurance carrier legally obligated to honor a known TRICARE lien in the settlement of a third-party liability claim? If not, is the carrier’s attempt to do so unreasonable as a matter of law?

This case is noteworthy because it presents the Court with its first opportunity to consider what subrogation obligations exist between an insurance company, a federal health benefits program, and an injured claimant in the context of a third-party liability claim. The Court’s decision as to the insurer’s lien obligations could have a substantial impact upon future tort victims in third-party liability claims in Montana.

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