1. If a member incurs an illness or injury for which medical services are payable under the plan for self-insurance established by the Board and the illness or injury is incurred under circumstances creating a legal liability in some person, other than the member, to pay all or part of the cost of those services, the Board is subrogated to the right of the member to the extent of all such costs, and may join or intervene in any action by the member or any successor in interest, to enforce that legal liability. 2. If a member or any successor in interest fails or refuses to commence an action to enforce that legal liability, the Board may commence an independent action, after notice to the member or any successor in interest, to recover all costs to which it is entitled. In any such action by the Board, the member may be joined as a third party defendant. 3. If the Board is subrogated to the rights of the member or any successor in interest as provided in subsection 1, the Board has a lien upon the total proceeds of any recovery from the persons liable, whether the proceeds of the recovery are by way of a judgment or settlement or otherwise. Within 15 days after recovery by receipt of the proceeds of the judgment, settlement or other recovery, the member or any successors in interest shall notify the Board of the recovery and pay the Board the amount due to it pursuant to this section. The member or any successors in interest are not entitled to double recovery for the same injury. 4. The member or any successors in interest shall notify the Board in writing before entering any settlement or agreement or commencing any action to enforce the legal liability referred to in subsection 1. 5. As used in this section, member means: (a) An active or retired officer or employee of the State or a dependent of such an officer or employee who is covered under the Program; and (b) An active or retired officer or employee of a local governmental agency or a dependent of such an officer or employee who is covered under the Program.
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