§ 9-1004. Subrogation to rights of uninsured employer

   (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.

HISTORY: An. Code 1957, art. 101, § 96; 1991, ch. 8, § 2; 1992, ch. 22, § 1.