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2017 Maryland Code
Labor and Employment
Title 9 - Workers' Compensation
Subtitle 10 - Uninsured Employers
§ 9-1004. Subrogation to rights of uninsured employer
Universal Citation: MD Lab & Emp Code § 9-1004 (2017)
- (a) In general. -- If the Fund pays compensation to a covered employee or the dependents of a covered employee, the Fund is subrogated to the rights of the uninsured employer under this title.
- (b) Recovery by Fund. -- If the Fund and the uninsured employer both have paid compensation to or on behalf of a covered employee or the dependents of a covered employee, the Fund shall apply any money that it recovers from a third party:
- (1) first, to repayment of the award paid by the Fund;
- (2) second, to any unsatisfied demand for security and to assessments imposed against the uninsured employer under this subtitle; and
- (3) finally, to the uninsured employer.
- (c) Excess recovery by Fund. -- If the Fund and the uninsured employer both have paid compensation to or on behalf of a covered employee or the dependents of a covered employee, and the Fund recovers money from a third party exceeding the amount of compensation awarded to the covered employee or the dependents and the reasonable and necessary expenses incurred in making the recovery, the Fund shall:
- (1) apportion the excess amount between the covered employee or the dependents and the Fund; and
- (2) use the balance to:
- (i) first, reimburse the Fund for its reasonable and necessary expenditures in making the recovery;
- (ii) second, repay any award paid by the Fund;
- (iii) third, satisfy any unsatisfied demand for security or assessments imposed against the uninsured employer under this subtitle; and
- (iv) finally, return the remainder to the uninsured employer.
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