Chap. 176.—An ACT to amend and re-enact sections 12, 26, 29,30, 31, 32, 38,
39, 42, 48, 53, 55, 57, 68, and 75 of an act entitled an act to prevent industrial
accidents ; to provide medical and surgical care for injured employees; to
establish rates of compensation for personal injuries or deaths sustained by
employees in the course of employment; to provide methads for insuring
the payment of such compensation; to create an industrial commission for
the administration of this act, and to prescribe the powers and duties of
such commission; to levy a tax and appropriate funds for the administration
of this act, which became a law March 21, 1918. - [S B 146]

Approved March 15, 1920.

1. Be it enacted by the general assembly of Virginia, That sec-
tions twelve, twenty-six, twenty-nine, thirty, thirty-one, thirty-two,
thirty-eight, thirty-nine, forty-two, forty-eight, fifty-three, fifty-five,
fifty-seven, sixty-eight and seventy-five of the above entitled act,
known as “The Virginia Workmen’s Compensation Act,” be amended
and re-enacted so as to read as follows:

Section 12. The rights and remedies herein granted to an em-
ployee where he and his employer have accepted the provisions of
this act respectively to pay and accept compensation on account of
personal injury or death by accident shall exclude all other rights and
remedies of such employee, his personal representative, parents, de-
pendents or next of kin, at common law or otherwise on account of
such injury, loss of service or death.

The making of a lawful claim against an employer for compen-
sation under this act for the injury or death of his employee shall
operate as an assignment to the employer of any right to recover dam-
ages which the injured employee or his personal representative or
other person may have against any other party for such injury or
death, and such employer shall be subrogated to any such right and
may enforce, in his own name or in the name of the injured employee
or his personal representative, the legal liability of such other party.
The amount of compensation paid by the employer or the amount of
compensation to which the injured employee or his dependents are en-
titled shall not be admissible as evidence in any action brought to
recover damages, but any amount collected by the employer under
the provisions of this section in excess of the amount paid by the
employer or for which he is liable shall be held by the employer for
the benefit of the injured employee or other person entitled thereto,

less such amounts as are paid by the employer for reasonable ex-
penses and attorney’s fees. Provided, that no compromise settle-
ment shall be made by the employer or insurance carrier in the exer-
cise of such right of subrogation without the approval of the indus-
trial commission and the injured employee or the personal represen-
tative or dependents of the deceased employee being first had and
obtained.

Where any employer is insured against liability for compensation
with any insurance carrier, and such insurance carrier shall have paid
any compensation for which the employer is liable or shall have as-
sumed the liability of the employer therefor, it shall be subrogated
to all the rights and duties of the employer, and may enforce any
such rights in its own name or in the name of the injured employee
or his or her personal representative, provided, however, nothing here-
in shall be construed as conferring upon insurance carriers any other
or further rights than those existing in the employer at the time of the
injury to his employee, anything in the policy of insurance to the con-
trary notwithstanding.

Nothing in this act contained shall be construed to make, for the
purposes of this act, the employees of an independent contractor the
employees of the person or corporation employing or contracting with
such independent contractor.

Section 26. For a period not exceeding sixty days after an acci-
dent the employer shall furnish or cause to be furnished free of
charge to the injured employee such necessary medical attention as
the nature of the accident may require, and the employee shall ac-
cept, and during the whole or any part of the remainder of his dis-
ability resulting from the injury, the employer may, at his own option,
continue to furnish or cause to be furnished, free of charge to the
employee, and the employee shall accept, an attending physician, un-
less otherwise ordered by the industrial commission; and in addition
such surgical and hospital service and supplies as may be deemed
necessary by said attending physician or the industrial commission.

The refusal of the employee to accept such service when pro-
vided by the employer shall bar said employee from further compen-
sation until such refusal ceases, and no compensation shall at any time
be paid for the period of suspension unless in the opinion of the in-
dustrial commission the circumstances justified the refusal, in which
case the industrial commission may order a change in the medical
or hospital service.

If in an emergency on account of the employer’s failure to pro-
vide the medical care during the first sixty days, as herein specified,
or for other good reasons, a physician other than provided by the
employer is called to treat the injured employee, during the first sixty
days, the ‘reasonable cost of such service shall be paid by the em-
ployer if ordered so to do by the industrial commission.

Section 29. No compensation shall be allowed for the first ten
calendar days of incapacity resulting from an injury except the bene-
its provided for in section twenty-six; but if incapacity extends be-
yond that period compensation shall commence with the eleventh day
of disability. If, however, such incapacity shall continue for a period
of more than six weeks, then compensation shall be allowed from the
first day of such incapacity.

Section 30. Where the incapacity for work resulting from the
injury is total, the employer shall pay, or cause'to be paid, as herein-
after provided, to the injured employee during such total incapacity
a weekly compensation equal to fifty per centum of his average
weekly wages, but not more than twelve dollars, nor less than five
dollars a week; and in no case shall the period covered by such com-
pensation be greater than five hundred weeks, nor shall the total
amount of all compensation exceed four thousand five hundred dollars.

Section 31. Except as otherwise provided iri the next section here-
after, where the incapacity for work resulting from the injury is par-
tial, the employer shall pay, or cause to be paid, as hereinafter pro-
vided, to the injured employee during such incapacity a weekly com-
pensation equal to fifty per centum of the difference between his aver-
age weekly wages before the injury and the average weekly wages
which he is able to earn thereafter, but not more than twelve dollars
a week, and in no case shall the period covered by such compensation
be greater than three hundred weeks from the date of the injury. In
case the partial incapacity begins after a period of total incapacity,
the latter period shall be deducted from the maximum period herein
allowed for partial incapacity.

Section 32. In cases included by the following schedule the in-
capacity.in each case shall be deemed to continue for the period speci-
fied, and the compensation so paid for such injury shall be as speci-
fied therein, and shall be in lieu of all other compensation, to-wit:

(a) For the loss of a thumb, fifty per centum of the average
weekly wages during sixty weeks.

(b) For the loss of a first finger, commonly called the index
finger, fifty per centum of the average weekly wages during thirty-
five weeks.

(c) For the loss of a second finger, fifty per centum of average
weekly wages during thirty weeks.

(d) For the loss of a third finger, fifty per centum of average
weekly wages during twenty weeks.

(e) For the loss of a fourth finger, commonly called the little
finger, fifty per centum of average weekly wages during fifteen weeks.

(f{) The loss of the first phalange of the thumb or any finger
shall be considered to be equal to the loss of one-half of such thumb
or finger, and the compensation shall be for one-half of the periods
of time above specified.

(zg) The loss of more than one phalange shall be considered the
loss of the entire finger or thumb: provided, however, that in no case
shall the amount received for more than one finger exceed the amount
provided in this schedule for the loss of a hand.

(h) For the loss of a great toe, fifty per centum of the average
weekly wages during thirty weeks.
(j) For the loss of one of the toes other than a great toe, fifty
per centum of average weekly wages during ten weeks. —

(k) The loss of the first phalange of any toe shall be considered
to be equal to the loss of one-half of such toe, and the compensation
shall be for one-half of the periods of time above specified.

(1) The loss of more than one phalange shall be considered as
the loss of the entire toe.

(m) For the loss of hand, fifty per centum of the average weekly
wages during one hundred and fifty weeks.

(n) For the loss of an arm, fifty per centum of average weekly
wages during two hundred weeks.

(0) For the loss of a foot, fifty per centum of average weekly
wages during one hundred and twenty-five weeks.

(p) For the loss of a leg, fifty per centum of average weekly
wages during one hundred and seventy-five weeks.

(q) For the permanent total loss of the vision of an eye, fifty
per centum of the average weekly wages during one hundred weeks;
and for the permanent partial loss of the vision of an eye, the per-
centage of one hundred weeks equivalent to the percentage of the
vision so permanently lost.

(r) The loss of both hands, or both arms, or both feet, or both
legs, or both eyes, or any two thereof, shall constitute total and per-
manent incapacity, to be compensated according to the provisions of
section thirty.

The weekly compensation payments referred to in this section
shall all be subject to the same limitations as to maximums and mini-
mums as set out in section thirty.

(s) In construing the foregoing section the permanent loss of
the use of a member shall be held equivalent to the loss of such mem-
ber, and for the permanent partial loss or loss of use of a member
compensation may be proportionately awarded.

Section 38. When an employee receives or is entitled to compen-
sation under this act, for an injury covered by section thirty-two, and
dies from any other cause than the injury for which he was entitled
to compensation, payment of the unpaid balance of compensation shall
be made to his statutory distributees, dependent upon him for sup-
port, in lieu of the compensation the employee would have been en-
titled to had he lived. Provided however, that if the death is due toa
cause that is compensable under this act and the dependents of such
employee are awarded compensation therefor, all right to unpaid com-
pensation provided by this section shall cease and determine.

Section 39. If the death results from the accident within six
years, the employer shall pay or cause to be paid, subject, however, to
the provisions of the other sections of this act, in one of the methods
hereinafter provided, to the dependent of the employee wholly de-
pendent upon his earnings for support at the time of accident a
weekly payment equal to fifty per cent of his average weekly wages,
but not more than twelve dollars nor less than five dollars a week
for a period of three hundred weeks from the date of the injury, and
burial expenses not exceeding one hundred dollars. If the employee
leave dependents only partly dependent upon his earnings for sup-
port at the time of the injury, the weekly compensation to be paid as
aforesaid, shall equal the same proportion of the weekly payments for
the benefit of persons wholly dependent as the amount contributed by
the employee to such partial dependents bears to the annual earnings
of the deceased at the time of his injury. When weekly payments
have been made to an injured employee before his death the compen-
sation to dependents shall begin from the date of the last of such pay-
ments, but shall not continue more than five hundred weeks from the
date of the injury. If the employee does not leave dependent, citizens
of and residing at the time of the accident in the United States or
the Dominion of Canada, the amount of compensation shall not in
any case exceed one thousand dollars.

Section 42. The total compensation payable under this act shall
in no case exceed forty-five hundred dollars ($4500.00).

Section 48. (a) Whenever payment of compensation is made to
a widow or widower for her or his use, or for her or his use and the
use of the child or children, the written receipt thereof of such widow
or widower shall acquit the employer.

(b) Whenever payment is made to any person eighteen years of
age or over, the written receipt of such person shall acquit the em-
ployer. In case where an infant or minor under the age of eighteen
years shall be entitled to receive a sum amounting to not more than
three hundred dollars as compensation for injuries, or as a distribu-
tive share by virtue of this act, the father, mother or natural guardian
upon whom such infant or minor shall be dependent for support, shall
be authorized and empowered to receive and receipt for such monies
to the same extent as a guardian of the person and property of such
infant or minor duly appointed by proper court, and the release or dis-
charge of such father, mother, or natural guardian shall be full and
complete discharge of all claims or demands of such infant or minor
thereunder. .

(c) Whenever any payment of over three hundred dollars is
made to a minor under eighteen years of age, or to a dependent child
over the age of eighteen years, the same shall be made to some suit-
able person or corporation appointed by the circuit or corporation court
or the judge thereof in vacation as a trustee, and the receipt of such
trustee shall acquit the employer.

(d) Payment of death benefits by an employer in good faith
to a dependent subsequent in right to another or other dependents
shall protect and discharge the employer unless and until such de-
pendent or dependents prior in right shall have given him notice of
his or her their claim. In case the employer is in doubt as to the
respective rights of rival claimants, he may apply to the industria!
commission to decide between them.

Sec. 53. (a) The salary of each member of the commissior
shall be four thousand dollars a year, payable in the same mannet
as the salaries of other State officers are paid. The commission may
appoint a secretary at a salary of not more than three thousanc
dollars a year, and may remove him.
(b) The commission may also, subject to the approval of the
governor, employ such clerical or other assistants as it may deem
necessary and fix the compensation of all persons so employed.

(c) The members of the commission and its assistants shall be
entitled to receive from the State their actual and necessary expenses
while traveling on the business of the commission, but such expenses
shall be sworn to by the persons who incurred the same and shall be
approved by the chairman of the commission before payment is made.

(d) All salaries and expenses of the commission shall be audited
and paid out of the State treasury in the manner prescribed for-simi-
lar expenses in other departments or branches of the State service.

Sec. 55. (a) The commission may make rules, not inconsistent
with this act, for carrying out the provisions of this act. Processes
and procedure under this act shall be as summary and simple as
reasonably may be. The commission or any member thereof or any
person deputized by it shall have the power for the purpose of this
act to subpoena witnesses, administer or cause to have administered
oaths, and to examine or cause to be examined such parts of the
books and records of the parties to a proceeding as relate to questions
in dispute.

The county sheriff or city or town sergeant or sheriff, and their
respective deputies, shall serve all subpoenas of the commission or its
deputies and shall receive the same fees as are now provided by law
for like civil actions; each witness who appears in obedience to such
subpoena of the commission shall receive for attendance the .fees
and mileage for witnesses in civil cases in courts.

The commission or any member or deputy commissioner shall
have authority to enforce the attendance of all parties in interest and
of witnesses and the production and examination of books, papers
and records as is vested by law in the circuit courts of this State.

Sec. 57. If after ten days from the date of the injury or at any
time in case of death, the employer and the injured employee or his
dependents reach an agreement in regard to compensation under this
act, a memorandum of the agreement in the form prescribed by the
mdustrial commission shall be filed with the commission; otherwise
such agreement shall be voidable by the employee or his dependents.

If approved by the commission, thereupon the memorandum shall
for all purposes be enforceable by the courts’ decree as hereinafter
specified.

Sec. 68. Every employer who accepts the provisions of this act
relative to the payment of compensation shall insure and keep insured
us liability thereunder in some corporation, association, organization
or State insurance fund authorized to transact the business of work-
nen’s compensation insurance in this State, or in somé mutual
Nsurance association formed by a group of employers so authorized,
x shall furnish to the industrial commission satisfactory proof of
us financial ability to pay direct the compensation in the amount
ind manner and when due as provided for in this act. In the latter
ase the. commission may in its discretion require the deposit of an
icceptable security, indemnity, or bond to secure the payment of com-
pensation liabilities as they are incurred. The State treasurer shall
be the custodian of the securities deposited by the employers under
the requirements of this section, and for such services he shall receive
a compensation of one-twentieth of one per centum per annum of the
amount of securities deposited with him, payable by the employer.

Provided that it shall be satisfactory proof of the employer’s
financial ability to pay direct the compensation in the amount and
manner when due, as provided for in this act, and acceptable security,
indemnity or bond to secure the payment of compensation liabilities
as they are: incurred, if the employer shall show to the industrial
commission that he is a member of an association or group of em-
ployers and as such is exchanging contracts of insurance with the
employers of this and other States, through a medium as specified
and located in their agreements between each other, and shall further
file with said industrial commission a certificate of authority issued
by the insurance department of any State to said group of employers
or association, together with a sworn financial statement showing
said group of employers or association to be in solvent condition, but
this proviso shall in no wise restrict or qualify the right of self
insurance as hereinbefore authorized.

Sec. 75. (a) The rates charged by all carriers of insurance,
including the parties to any mutual, reciprocal, or other association,
writing insurance against the liability for compensation under this
act, shall be fair, reasonable and adequate, and all risks of the same
kind and degree of hazard, shall be written at the same rate by the
same carrier. Subject to such rules as the commissioner of insur-
ance may prescribe, the basic rates may be modified in accordance
with a plan of physical or schedule rating, and rates for the renewal
of risks carried under policies of insurance having a normal expira-
tion date July first, nineteen hundred and twenty, or later, may be
further modified in accordance with a plan or scheme of experience
rating. No policy of insurance against liability for compensation
under this act, shall be valid until the rate thereof has been approved
by the commissioner of insurance, nor shall any such carrier of insur-
ance write any such policy or contract until its basic and merit rating
schedules have been filed with, approval and not subsequently dis-
approved by the commissioner of insurance.

(b) Each such insurance carrier shall report to the commissione!
of insurance in accordance with such reasonable rules as the commis:
sioner of insurance may at any time prescribe, for the purpose ol
determining the solvency of the carrier, and the adequacy of its rates:
for such purpose the commissioner of insurance may inspect the
books and records of such insurance carrier, and examine its agents
officers and directors under oath.

(c) For the purpose of paying the salaries and necessary expense:
of the commission and its assistants and employees in administering
and carrying out the provisions of this act an administrative func
shall be created and maintained in the following manner:

Every person, partnership, association, corporation, whether or
ganized under the laws of this or any other State or country, company
mutual company or association, the parties to any inter-indemnity
contract or reciprocal plan or scheme, and every other insurance
carrier, insuring employers in this State against liability for personal
injuries to their employees, or death caused thereby, under the pro-
visions of this act, shall, as hereinafter provided, pay a tax upon the
premiums received whether in cash or notes, in this State or on ac-
count of business done in this State, for such insurance in this State,
at the rate of three per cent of the amount of such premium, which
tax shall be in lieu of all other taxes on such premiums, which tax
shall be assessed and collected as hereinafter provided. Provided,
however, that such insurance carriers shall be credited with all can-
celled or return premiums, actually refunded during the year on
such insurance, and with premiums on re-insurance with companies
authorized and licensed to transact business in Virginia, which re-
insurance shall be reported by the re-insurer; but no credit shall be
allowed for re-insurance in companies not licensed to transact busi-
ness in Virginia.

(d) Every such insurance carrier shall, for the six months end-
ing June thirtieth, nineteen hundred and nineteen, for the twelve
months ending December thirty-first, nineteen hundred and nineteen,
and annually thereafter, make a return verified by the affidavit of
its presidents and secretaries, or other .chief officers or agents, to
the commissioner of insurance, stating the amount of all such pre-
miums and credits during the period covered by such returns. Every
insurance carrier required to make such return shall file the same
with the commissioner of insurance within thirty days after the close
of the period covered thereby and shall at the same time pay into the
State treasury a tax of three dollars on each one hundred dollars of
such premium ascertained as provided in sub-section (c) hereof,
less return premiums on cancelled policies and re-insurance with
other companies licensed to transact business in this State, upon re-
ceiving such payments the State treasurer shall place the whole
thereof to the credit of the fund for the administration of this act,
and shall pay same out in the manner provided by section seventy-
eight hereof.

(e) If any such insurance carried shall fail or refuse to make
the return required by this act, the said commissioner of insurance
shall assess the tax against such insurance carrier at the rate herein
provided for, on such amount of premiums as he may deem just, and
the proceedings thereon shall be the same as if the return had been

e.

(f) I£ any such insurance carrier shall withdraw from business
in this State before the tax shall fall due, as herein provided, or shall
fail or neglect to pay such tax, the commissioner of insurance shall
at once proceed to collect the same, and he is hereby empowered and
authorized to employ such legal process as may be necessary for that
purpose, and when so collected he shall pay the same into the State
treasury. The suit may be brought by the commissioner of insurance,
in his official capacity, in any court of this State having jurisdiction ;
reasonable attorneys’ fees may be taxed as costs therein, and process
may issue at any county of the State, and may be served as in civil
actions, or in case of unincorporated associations, partnerships, inter-
indemnity, contracts, or other plan or scheme, upon any agent of the
parties thereto upon whom process may be served under the laws of
this State.

(g) Any person or persons who shall in this State act or assume
to act as agent for any such insurance carrier whose authority to do
business in this State has been suspended, while such suspension re-
mains in force, or shall neglect or refuse to comply with any of the
provisions of this section obligatory upon such persons or party, or
who shall wilfully make a false or fraudulent statement of the busi-
ness or condition of any such insurance carrier or false or fraudu-
lent return as herein provided, shall be deemed guilty of a misde-
meanor, and upon conviction shall be punished by a fine of not less
than one hundred nor more than one thousand dollars, or by impris-
onment for not less than ten nor more than ninety days, or both
such fine and imprisonment, in the discretion of the jury.

(h) Whenever by this act or the terms of any policy contract
any officer is required to give any notice to an insurance carrier,
the same may be given by delivery or by mailing by registered letter
properly addressed and stamped, to the principal office, or chief
agent of such insurance carrier within this State, or to its home
office, or to the secretary, general agent, or chief officer thereof in
the United States.

(1) Any insurance carrier liable to pay a tax upon premiums
under this act shall not be liable to pay any other or further tax
upon such premiums, or on account thereof, under any other law of
this State.

(j) Every employer carrying his own risks under the provisions
of section sixty-eight shall, under oath, report to the board his pay
roll, subject to the provisions of this act. Such report shall be made
in form prescribed by the commission and at the time herein pro-
vided for premium reports by insurer. The commissioner shall assess
against such pay roll a maintenance fund tax computed by taking
three per centum of the basic premiums chargeable against the same
almost similar industry or business, taken from the manual insurance
rate for compensation then in force in this State.

(k) The commission shall not be authorized to incur expenses
or indebtedness during any period, chargeable against the mainte-
nance fund, in excess of the premium tax payable to such fund
for the same period. If it be ascertained that the tax collected for
a given period exceeds the total chargeable against maintenance fund
under the provisions of this act, the commission may authorize a
corresponding credit upon collections for the succeeding period after
the payment of expenses for the year nineteen hundred and twenty
the commission shall pay into the State treasury on or before August
first, nineteen hundred and twenty-one, and annually thereafter on
or before August first, all monies collected under this act over and
above such sums as are necessary to pay expenses and to pay suck
amounts as may be otherwise appropriated by the general assembly.

2. This act shall be in force on and after July first, nineteen hun-
dred and twenty.