Code of Virginia

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Code of Virginia
Title 65.2. Workers' Compensation
Chapter 12. Uninsured Employer's Fund
4/18/2021

Chapter 12. Uninsured Employer's Fund.

§ 65.2-1200. Fund created.

There is hereby created a fund to be known as the "Uninsured Employer's Fund" to be administered, maintained and disbursed by the Commission as hereinafter provided.

1977, c. 345, § 65.1-146; 1991, c. 355.

§ 65.2-1201. Financing; tax.

A. For the purpose of providing funds for compensation benefits awarded against any uninsured or self-insured employer under any provision of this chapter, a tax not to exceed one-half of one percent shall be assessed, collected and paid into the state treasury by the same persons and in the same manner as set forth in Chapter 10 (§ 65.2-1000 et seq.) of this title.

B. This tax shall be in addition to the tax for the Workers' Compensation Commission Administrative Fund and the tax for the Second Injury Fund and shall be held by the Comptroller of the Commonwealth solely for the payment of awards against such fund.

C. At the end of any calendar year in which the Uninsured Employer's Fund has to its credit a sum in excess of the next year's budgeted expenditures, the tax shall be suspended for the ensuing calendar year.

1977, c. 345, § 65.1-147; 1983, c. 421; 1986, c. 177; 1990, c. 606; 1991, c. 355; 1997, c. 99; 1998, c. 388; 2009, c. 219.

§ 65.2-1202. Defense of claims against fund by Attorney General.

Upon being notified by the Commission that a claim is pending before it against an employer who has not complied with the provisions of § 65.2-801, the Attorney General, or his designee, may, in his discretion, appear before the Commission and defend any claim against the Uninsured Employer's Fund. A decision on the part of the Attorney General not to appear shall be made only after consultation with the Commission. With the leave of the Commission, the Attorney General may enter an appearance in a claim at any stage of the proceedings if he determines that the position of the fund needs to be protected.

1977, c. 345, § 65.1-148; 1988, c. 545; 1991, c. 355.

§ 65.2-1203. Awards.

A. 1. Whenever, following due investigation of a claim for compensation benefits, the Commission determines that (i) the employer of record has failed to comply with the provisions of § 65.2-801 or that a self-insured employer or its surety as required by § 65.2-801 is unable to satisfy an award in whole or in part, and (ii) the claim is compensable, the Commission shall make a provisional award of compensation benefits, or any unpaid balance thereof, without further delay. Thereafter, the Commission shall make a final award concerning such benefits or unpaid balance thereof, in accordance with the provisions of this chapter and all applicable provisions of this title. The Commission shall order payment of any award of compensation benefits pursuant to this chapter from the Uninsured Employer's Fund.

2. After an award has been entered against an employer for compensation benefits under any provision of this chapter, and upon finding that the employer has failed to comply with the provisions of § 65.2-801, or that a self-insured employer or its surety as required by § 65.2-801 is unable to satisfy an award in whole or in part, the Commission shall order the award, or any unpaid balance, to be paid from the Uninsured Employer's Fund after demand has been made by a claimant upon his employer or other uninsured entity which is responsible to pay the award. Such demand may be waived by the Commission for good cause shown.

B. For the purposes of this chapter, an employer who is a former member of a group self-insurance association or group self-insurance pool whose license has been terminated by the State Corporation Commission and whose security deposit with the State Treasurer or surety coverage has been exhausted shall be deemed to be an uninsured employer not in compliance with § 65.2-801. For all such uninsured employers, the Attorney General, or his designee, shall enforce the right of subrogation and recoupment as provided in § 65.2-1204.

1977, c. 345, § 65.1-149; 1983, c. 460; 1988, c. 604; 1991, c. 355; 1993, c. 624; 1997, c. 131; 2009, cc. 285, 336.

§ 65.2-1204. Subrogation and recoupment.

The Commission shall, upon payment of a claim from the Uninsured Employer's Fund, be subrogated to any right to recover damages which the injured employee or his personal representative or any other person may have against his employer or any other party for such injury or death.

The Commission shall, on behalf of the Uninsured Employer's Fund, refer any unsatisfied claim against an uninsured employer to the Attorney General for collection.

1977, c. 345, § 65.1-150; 1991, c. 355.

§ 65.2-1205. Notification of change in earnings; change in award.

The burden shall be upon the claimant to immediately notify the Commission in writing of any increase or decrease in his earnings. After ten days' notice to the claimant and the Attorney General, the Commission may, upon its own motion or upon the motion of any party in interest, modify or terminate an award as conditions may require.

1977, c. 345, § 65.1-151; 1991, c. 355.

§ 65.2-1206. Payments procured by fraud, mistake or unreported change in condition; recovery.

Any payment to a claimant pursuant to this chapter which is later determined by the Commission to have been procured by fraud, mistake or an unreported change in condition, shall be recovered from the claimant and credited to the Uninsured Employer's Fund.

1977, c. 345, § 65.1-152; 1991, c. 355.