I seem to remember it that way, but I'd love to hear someone else confirm it. I know that as a necro, trying to lifetap caster mobs who had runes on I'd either get no health back at all, or a reduced amount (subtract the rune value from the lifetap damage, get healed for whatever overflowed; no heal if the rune held up).
So it sure worked for NPC casters that way. I didn't use them often since I was a poor necro and had a hard enough time keeping peridots, coffins, and essence emeralds on hand for pets, summons, and rezzes =P
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