the basis of a compensation order fixing the right of the beneficiary to compensation.

§ 41.18 Compensation from special fund in cases of permanent disability.

In any case in which an employee receives an injury which would of itself cause only permanent partial disability, but which when combined with disability resulting from a previous unrelated injury does in fact cause permanent total disability or disability less than permanent total so that the case would be one within the purview of section 8 (f) of said act (44 Stat. 1429; 33 U. S. C. 908 (f)), the deputy commissioner shall in a compensation order find separately the facts relating to each injury and shall find the extent of the employee's disability resulting from each injury and shall make an award against the employer only for the results of the subsequent injury. Upon the cessation of payments of compensation for such disability, the case, if one involving permanent total disability, shall be transmitted to the Bureau for consideration of an award by it out of the special fund established in section 44 of said act (44 Stat. 1444; 33 U. S. C. 944). The deputy commissioner will not make an award of compensation to be paid from the special fund. Awards from the special fund will not be made in cases in which an injury increases or aggravates disability due to disease, congenital defects or causes other than a prior injury; in such cases the employer is liable for compensation for all of such increased or aggravated disability, and the deputy commissioner will make his award accordingly.

§ 41.19 Maintenance

for employees undergoing vocational rehabilitation. Awards of additional compensation for the purpose of maintenance of an employee undergoing vocational training at the direction of the Bureau, under the provisions of section 8 (g) and section 39 (c) of said act (44 Stat. 1429, 1443; 33 U. S. C. 908 (g), 939 (c)), shall be made only by the Bureau. For this purpose the Bureau may require investigations by the deputy commissioner with respect to any case and the recommendation of the deputy commissioner as to the propriety and need for such maintenance.

§ 41.20 Representatives of parties in interest and fees for services.

(a) Any party in interest, whether claimant, employer or insurance carrier, may be represe: d before the deputy commissioner by any person previously authorized in writing for such purpose. Any attorney in good standing, admitted to the bar of the District of Columbia, may when so authorized appear as attorney in respect of a claim under said act. For good cause shown, the deputy commissioner may, after opportunity to be heard and subject to the approval of the Bureau, bar any such representative from further appearance before him in any such proceeding.

(b) No claim for legal or other services rendered in respect of a claim or award for compensation, to or on account of any person, shall be valid unless approved by the deputy commissioner, and any claim so approved shall, in the manner and to the extent fixed by the deputy commissioner, be a lien upon such compensation. No contract for a stipulated fee or for a fee on a contingent basis will be recognized by the deputy commissioner, and no fee for services shall be approved except upon an application to the deputy commissioner supported by a sufficient statement of the extent and character of the necessary work done on behalf of the claimant. Except where the claimant has been advised that such representation will be rendered gratuitously, the fee approved by the deputy commissioner shall be reasonably commensurate with the actual necessary work performed by such representative, taking into account the capacity in which the representative has appeared, the amount of compensation involved and the circumstances of the claimant.

(c) Any person (1) who receives any fee, other consideration, or any gratuity on account of services so rendered, other than the fee approved by the deputy commissioner, or (2) who makes it a business to solicit employment for another person or for himself in respect of any claim or award for compensation may be certified to the United States attorney for prosecution under section 28 (b) of said act (44 Stat. 1438, 33 U. S. C. 928 (b)). § 41.21 Availability of records for inspection.

Any party in interest may be permitted to examine the record of the case in which he is interested. The dep

uty commissioner, however, shall be the judge of the reasonableness of any such request and may in his discretion deny inspection of any such record or part thereof which in his opinion may result in damage or harm to the beneficiary or to any other person, or which may be Inimical to the interests of tl.e Bureau or of the United States. The original record in any such case shall not be removed from the office of the deputy commissioner for such inspection.

§ 41.22 Employer's record of injury or death.

Every employer shall keep a record in respect of any injury to an employee. The record shall contain information of disease, other disability, or death in respect of such injury and shall be available to inspection by the Bureau or by any State authority.

(Sec. 29, 44 Stat. 1438; 33 U. S. C. 929)

§ 41.23 Transfer of cases.

(a) At any time after a claim has been filed with him, the deputy commissioner may, with the approval of the Bureau, transfer such case to any other deputy commissioner for the purpose of making investigation, taking testimony, making physical examinations or taking such other necessary action therein as may be directed.

(b) Request for approval of such a transfer of a case may be made by letter to the Bureau in which the deputy commissioner shall set forth fully the purpose of such transfer. If such transfer should be approved by the Bureau, the deputy commissioner making the transfer shall by letter to the deputy commissioner to whom the case is transferred, give such advice, comments, suggestions or directions as may be needed under the circumstances of the particular case, transmitting to the Bureau a copy of such letter. The file of the deputy commissioner, including transcripts of testimony, may be sent to the deputy commissioner to whom the case is transferred, if necessary, for proper action by him. All official papers should be sent

by registered mail.

[4 F.R. 1699, Apr. 27, 1939]

which failure the said act subjects an employer or carrier to the imposition of a civil penalty, the deputy commissioner shall make full report to the Bureau of the facts relating to such apparent failure and shall therein make his recommendation as to the assessment of such penalty. The Bureau upon ascertaining that there has been such failure will call upon the offending employer or carrier to show cause, within a reasonable time stated, why such civil penalty should not be assessed by the Bureau.

§ 41.25 Agreed settlements.

(a) In cases under section 8(c) (21) and section 8(e) of said act, whenever the deputy commissioner determines that it is for the best interests of an injured employee entitled to compensation, he may, with the approval of the Bureau, approve agreed settlements of the interested parties, discharging the liability of the employer for such compensation, notwithstanding the provisions of section 15(b) and section 16 of said act: Provided, That the sum so agreed upon shall be payable in installments as provided in section 14 (b) of said act, which instalments shall be subject to commutation under section 14 (j) of said act: And provided further, That if the employee should die from causes other than the injury after the Bureau has approved an agreed settlement, the sum so approved shall be payable, in the manner herein prescribed, to and for the benefit of the persons enumerated in section 8 (d) of said act.

(b) Application for approval of an agreed settlement under section 8 (1) of the said act shall be made in writing to the deputy commissioner by the parties in interest. The application shall set forth fully all facts necessary to disclose the status of the case and the reason for seeking approval of an agreed settlement under said section, as well as the specific terms of such agreed settlement, and shall be accompanied by a report of examination of the employee, if a recent report is not of record in the office of the deputy commissioner. Such application, including all supporting papers, shall be submitted in duplicate.

(c) If the case is one coming within the purview of section 8 (c) (21) or section 8 (e) of said act, and the deputy commissioner should determine that the proposed agreed settlement according to such application is for the best interests

of the injured employee, the deputy commissioner shall transmit to the Bureau a copy of the proposed agreed settlement, together with a statement of his recommendation to such effect. The deputy commissioner shall transmit to the Bureau his complete fille in the case. If the disability as found in the last compensation order filed in the case is not of such character and quality as to bring the case within the purview of section 8 (c) (21) or section 8 (e), the deputy commissioner shall file a compensation order making necessary findings of fact relative to the character and quality of disability and to the current wageearning capacity of the employee. If such course is not practical, the deputy commissioner may in his communication advise the Bureau with respect to the probable character and quality of disability according to the most recent evidence received and shall inform the Bureau of the probable current wageearning capacity of the employee. With such recommendation the deputy commissioner shall submit such other information as may bear upon the advisability of approving the agreed settlement.

(d) Section 8 (i) was intended to furnish a legal basis for agreement as to the payment of compensation for probable future disability, principally in cases in which the symptoms of disability are largely subjective, the extent of loss of wage-earning capacity due to such disability is difficult to determine, and where the compensation rate is likely to fluctuate and be subject to change over long periods of time. This section was not intended to furnish generally a basis for the settlement of claims or as a mere convenience in disposing of cases. [4 FR. 1700, Apr. 27, 1939]

Report; by whom sent.

42.16

42.17 42.18

Agreement to be bound by card report. Name of one employer only shall be reported on one card.

AUTHORITY: The provisions of this Part 42 issued under sec. 39, 44 Stat. 1442, 45 Stat. 600; 33 U.S.C. 939, 36 D.C. Code 501, 502, unless otherwise noted.

SOURCE: The provisions of this Part 42 contained in Regulations under the District of Columbia workmen's compensation law, May 31, 1938, unless otherwise noted.

§ 42.1 Types of companies which may be authorized by the Bureau.

The Bureau will consider for the granting of authority to write insurance under the District of Columbia workmen's compensation law (45 Stat. 600; 19 D.C. Code 11, 12) the application of any stock company, mutual company or association, or any other person or fund, while authorized under the laws of the United States or of any State to insure workmen's compensation. The term "carrier" as used in this part means any person or fund duly authorized to insure workmen's compensation benefits under said act (44 Stat. 1424; 33 U.S.C. Chapter 18).

§ 42.2 Applications for authority to write insurance; how filed; evidence to be submitted; other requirements. An application for authority to write insurance under this law shall be made in writing, signed by the principal officer of the applicant duly authorized to make such application, and transmitted to the Bureau of Employee's Compensation, United States Department of Labor. Such application shall be accompanied by full and complete information regarding the history and experience of such applicant in the writing of workmen's compensation insurance, together with evidence that it has authority in its charter or form of organization to write such insurance, and evidence that the applicant is currently authorized to insure workmen's compensation liability under

the laws of the United States or of any State. The statements of fact in each application and in the supporting evidence shall be verified by the oath of the officer of the applicant who signs such application. Whether or not expressly stated in such application, every such application shall be deemed to have included in it the agreement of the applicant to be bound by the regulations of the Bureau under said law. Every certificate of authority to write such insurance, issued under § 42.6, shall be deemed to have been issued by the Bureau to an applicant under the regulations in this subchapter upon consideration of the applicant's agreement to be bound by the regulations of the Bureau under said law. In connection with any such application the following shall be submitted, the Bureau reserving the right to call for such additional information as it may deem necessary in any particular case:

(a) A copy of the last annual report made by the applicant to the insurance department or other authority of the State in which it is incorporated, or to the insurance department of the District of Columbia, or the State in which its principal business is done.

(b) A certified copy from the proper authority of the State in which applicant is incorporated, or of the Superintendent of Insurance of the District of Columbia, of the paper purporting to show the action taken upon such report, or such other evidence as the applicant may care to submit in respect of such report, which may obviate delay incident to an inquiry by the Bureau of such authorities relative to the standing and responsibility of the applicant; and the certificate of the Superintendent of Insurance of the District of Columbia that applicant has been duly authorized to write insurance in the District of Columbia.

(c) If not otherwise shown, the applicant shall furnish a full and complete statement of its financial condition, and, if a stock company, shall show specifically its capital stock and surplus.

(d) A copy of its charter or other formal outline of its organization, its rules, its by-laws, and other documents, writings, or agreements by and under which it does business, and such other evidence as it may deem proper to make a full exposition of its affair and financial condition.

§ 42.3 Stock companies holding Treasury certificates of authority.

A stock company furnishing evidence that it is authorized to write workmen's compensation insurance under the laws of the United States or of any State, which holds a certificate of authority from the Secretary of the Treasury as an acceptable surety on Federal bonds, unless requested to do so, need not transmit to the Bureau with its application copies of such financial reports as are on fille in the Department of the Treasury. The acceptance by said Department of such a company will be considered by the Bureau in conjunction with the application of such company provided there has been compliance with the other requirements of the regulations in this subchapter. § 42.4 Applicants currently authorized to write insurance under the Longshoremen's and Harbor Workers' Compensation Act.

Any applicant currently authorized by the Bureau to write insurance under the Longshoremen's and Harbor Workers' Compensation Act, which has been authorized by the Superintendent of Insurance for the District of Columbia to write insurance in the District of Columbia, need not support its application with the evidence required by the regulations in this subchapter, except the form of policy and endorsement which it proposes to use, unless specifically requested by the Bureau, but instead its application may refer to the fact that it has been so authorized.

§ 42.5 Copies of forms of policies to be submitted with application.

With each application for authority to write insurance there shall be submitted for the approval of the Bureau copies of the forms of policies which the applicant proposes to issue in writing insurance under the said law, to which shall be attached the District of Columbia endorsement to be used in connection therewith as provided for in § 42.9.

§ 42.6 Certificate of authority to write insurance.

No corporation, company, association, person, or fund shall write insurance under said law without first having received from the Bureau a certificate of authority to write such insurance. The Bureau may suspend or revoke any such certificate prior to its expiration, for good cause shown, after a hearing if ap

plied for or deemed necessary, but no suspension or revocation shall affect the liability of any carrier already incurred. § 42.7 Period of certificate of authority.

No certificate of authority to write Insurance under said law and the regulations in this subchapter shall be issued by the Bureau for a period in excess of 18 months and the expiration date thereof, which shall be stated in the certificate of authority, shall fall on the 30th day of June.

§ 42.8 Applications for reauthorization.

Any carrier holding an unexpired certificate of authority and desiring reauthorization to write insurance for the period of a year from the expiration of such certificate shall apply to the Bureau by letter over the signature of its principal officer for such a certificate of authority. No evidence of the financial condition of such carrier need be furnished in support of such application unless requested by the Bureau after the application is received. The Bureau may require such carrier to submit for the Bureau's consideration in connection with such reauthorization evidence or explanation relating to the experience and practice of such carrier in the conduct of its affairs with respect to the said law or with reference to the fidelity and punctuality of the performance by such carrier of its past or current obligations under the law. Such application, to avoid a break in the period of authorization of the carrier to write such insurance, should be filled with the Bureau not later than May 15 of each year.

§ 42.9 District of Columbia endorse

ment.

(a) The following form of endorsement applicable to the standard workmen's compensation and employer's liability policy, shall be used with the form of policy approved by the Bureau for use by an authorized carrier:

For attachment to Policy No.

The obligations of paragraph one (a) of the policy include the District of Columbia Workmen's Compensation Act, being Public Act No. 419 of the 70th Congress, approved May 17, 1928, and the applicable provisions of the Longshoremen's and Harbor Workers' Compensation Act, being Public Act No. 803 of the 69th Congress approved March 4, 1927, and all laws amendatory of either of said Acts or supplementary thereto which may be or become effective while this policy is in force. The Company will carry out the provisions of section 35 of the Longshoremen's and

Harbor Workers' Compensation Act made applicable by said Public Act No. 419 of the 70th Congress. Insolvency or bankruptcy of the employer and/or discharge therein shall not relieve the Company from payment of compensation and other benents lawfully due for disability or death sustained by an employee during the life of the policy.

The Company agrees to abide by all the provisions of said District of Columbia Workmen's Compensation Act and all lawful rules, regulations, orders, and decisions of the Bureau of Employees' Compensation, Federal Security Agency and of the deputy commissioner for the District of Columbia having jurisdiction unless and until set aside, modified, or reversed by a court having jurisdiction of the parties and the subject matter.

This endorsement shall not be canceled prior to the date specified in this policy for its expiration until at least thirty days have elapsed after a notice of cancelation has been sent to the Deputy Commissioner for the District of Columbia, and to this employer.

Reference to the law of any State in Conditions B and D of this policy are hereby declared to include, for the purpose of this endorsement only, the provisions of the District of Columbia Workmen's Compensation Act.

(b) The following paragraphs, or any of them, may at the option of the insurer be included in the form of endorsement which is provided above. No other provision, alteration of any prescribed provision, or alteration of any optional provision shall be made or used in any such endorsement except after submission to the Bureau and its specific approval thereof.

If this employer is a contractor the subject of whose contract includes operations covered by this policy and he shall subcontract all or any part of such contract to one or more subcontractors, the remuneration of all the direct employees of all such subcontractors shall be included in the return of remuneration under the provisions of this policy upon which premium is computed. Such remuneration so reported shall be considered the remuneration of employees of this employer and shall in all instances be governed by the same terms, conditions, requirements, and obligations of the policy as the remuneration of the direct employees of this employer. The requirements of this paragraph shall not apply as respects any such subcontractor who has secured compensation for his direct employees as required by the District of Columbia Workmen's Compensation Act, but this employer shall not claim the benefit of this exemption unless and until he shall satisfy the Company by certificate or otherwise that any such subcontractor has legally secured the payment of compensation to his own direct