                                 CODE OF VIRGINIA

CREATION OF LIEN AND SUBROGATION OF EMPLOYER TO EMPLOYEE&#8217;S RIGHTS TO
RECOVER UNINSURED OR UNDERINSURED MOTORIST BENEFITS PURSUANT TO INSURANCE
COVERAGE CARRIED BY AND AT THE EXPENSE OF EMPLOYER (§ 65.2-309.1)

A. A claim against an employer under this title for injury or death benefits
shall create a lien and right of subrogation on behalf of the employer, as set
forth in &#xA7; 65.2-309, against proceeds recovered by the injured employee
pursuant to the uninsured or underinsured motorist provisions of a policy of
motor vehicle insurance carried by and at the expense of the employer. In any
action by an employee against any person other than the employer, the court
shall, after reasonable notice to the parties and the employer, ascertain the
amount of compensation paid and expenses for medical, surgical and hospital
attention and supplies, and funeral expenses incurred by the employer under the
provisions of this title and deduct therefrom a proportionate share of such
amounts as are paid by the plaintiff for reasonable expenses and
attorney&#8217;s fees as provided in &#xA7; 65.2-311; and, in the event of
judgment against such person other than the employer, the court shall, in its
order, require that the judgment debtor pay such compensation and expenses of
the employer, less said share of expenses and attorney&#8217;s fees, so
ascertained by the court out of the amount of the judgment, so far as
sufficient, and the balance, if any, to the judgment creditor.

B. If an injured employee is entitled to underinsured motorist coverage under
more than one policy, the order of priority shall be as provided by subsection B
of &#xA7; 38.2-2206.

HISTORY: 1995, c. 267; 2004, cc. 914, 941.