Does the PIP have to be paid back to the insurer as part of the settlement?

1) Whenever a person's own insurance ("first party" insurance) pays out (e.g. PIP; collision), if there is a lawsuit, the insurer has the right to be reimbursed for its payment out of any winnings. This prevents the insured from double dipping--e.g. if someone has $5k of medical expenses and gets $5k from the insurer, he should not be enriched by also winning another $5k.

2) The insurer would have a right to be paid either out of the proceeds of a successful lawsuit or from the amount recovered in a settlement. If you sue for and recover totally different damages--e.g. if you received medical from the insurer and sued for and won property damage reimbursement--you would not necessarily have to turn over those monies; but if you recover anything related to what you were paid by your insurance (e.g. if you received PIP, anything related to bodily injury), you would.