Lien Reduction - I.C. § 34-51-2-19

Subrogation claims or other liens or claims arising out of the payment of medical expenses or other benefits as the result of personal injuries or death shall be diminished by the claimant’s comparative fault or the uncollectibility of the full value of the claim resulting from limited liability insurance or any other cause in the same proportion as the claimant’s recovery is reduced. The lien or claim shall also bear a pro rata share of the claimant’s attorney fees and litigation expenses.

Provides that payment of UM/UIM coverage for damages operates to subrogate the insurer to any cause of action in tort which payee may have.

Exception to the Right of Subrogation for UIM Payments - I.C. § 27-7-5-6(b)

The insurer providing underinsured motorist coverage does not have the right of subrogation if it is informed of a bona fide offer of settlement which includes a certification of the liability coverage limits of the underinsured motorist and the insurer fails to advance payment in at least the amount of the offer within 30 days.