employees and then only respecting any subcontractor who has furnished such proof.

If this employer is a corporation, the entire remuneration of the president, any vicepresident, secretary, treasurer, and other executive officers elected or appointed in accordance with the charter and by laws of such corporation shall be disclosed and premium shall be paid thereon, subject to a minimum individual remuneration of $30 per week, if the actual remuneration is less than such amount, and to a maximum individual remuneration of $100 per week, if the actual remuneration is greater than such amount.

The remuneration so determined of each executive shall be assigned without division to the classification which is applicable to the actual operations in which such executive officer is primarily engaged, provided the remuneration so determined of each executive officer who performs such duties as are ordinarily undertaken by a superintendent, foreman or workman, or whose duties include direct charge of the actual performance of any operations of this employer, shall be assigned without division to the highest rated classification which is applicable to any such duties undertaken by such executive officer for any part of his time.

If the premium as determined in accordance with the provisions of the policy is less than $300, there shall be added thereto an Expense Constant of $10, unless such addition shall increase the premium to an amount in excess of $300. in which event only such part of the Expense Constant shall be added as will bring the amount of the premium up to $300. Inclusion of the Expense Constant or any part thereof in the Estimated Advance Premium is subject to final adjustment upon audit, all in accordance with the provisions hereof. The Minimum Premium of the Policy includes the Expense Constant.

prescribed by § 42.9 is not appropriate when used in conjunction with a form of policy approved for use by the Bureau, no modification thereof shall be used unless specifically approved by the Bureau. Where the form of policy is designed to include therein the obligations of the insurer under said act without the use of the District of Columbia endorsement, the policy shall contain the provisions required to be included in the District of Columbia endorsement, as stated in said section. The policy may include the optional provisions authorized in said section. Such a policy, however, shall not be used until expressly approved by the Bureau.

A policy or contract of insurance shall be issued for the term of not less than 1 year from the date that it becomes effective, but if such insurance be not needed except for a particular contract or operation, the term of the policy may be limited to the period of such contract or operation.

§ 42.13 Notice of cancellation.

Cancellation of a contract or policy of insurance issued under authority of said act shall not become effective otherwise than as provided by section 36(b) of said act (44 Stat. 1442; 33 U.S.C. 938(b)); and notice of a proposed cancellation shall be given to the deputy commissioner and to the employer in accordance with the provisions of subdivision (c) of section 12 of said act (44 Stat. 1431; 33 U. S. C. 912 (c)) 30 days before such cancellation is intended to be effective.

§ 42.14 Discharge by the carrier of obligations and duties of employer. Every obligation and duty in respect of payment of compensation, the providing of medical and other treatment and care, the payment or furnishing of any other benefit required by said law and in respect of the carrying out of the administrative procedure required or imposed by said law or the regulations of this subchapter upon an employer shall be discharged and carried out by the carrier except that the prescribed report of injury or death shall be sent by the employer to the deputy commissioner and to the insurance carrier as required by section 30 of said act (44 Stat. 1439; 33 U. S. C. 930). Such carrier shall be jointly responsible with the employer for the submission of all reports, notices, forms. and other administrative papers required by the deputy commissioner or the Bureau in the administration of said act to be submitted by the employer, but

any form of paper so submitted where required therein shall contain in addition to the name and address of the carrier, the full name and address of the employer on whose behalf it is submitted. Notice to or knowledge of an employer of the occurrence of the injury or death shall be notice to or knowledge of such carrier. Jurisdiction of the employer by the deputy commissioner, the Bureau, or any court under said law shall be jurisdiction of such carrier. Any requirement by the deputy commissioner, the Bureau, or any court under any compensation order, finding, or decision shall be binding upon such carrier in the same manner and to the same extent, as upon the employer.

(Sec. 35, 44 Stat. 1441; 33 U. S. C. 935.) § 42.15 Report by carrier of issuance of policy or endorsement; form.

(a) The following prescribed card report of the issuance of a policy of insurance under said law is authorized by the Eureau for use in reporting to the deputy commissioner the issuance of such a policy, so as to make unnecessary the presentation of such policy by an employer, as required by § 42.17. The report shall be made upon a printed card to be provided by such carrier. Such card shall be 50 percent rag, white, light weight, and 3 by 5 inches. The printing thereon shall be as follows:

This card to be sent to the Deputy Commissioner for the District of Columbia, Bureau of Employees' Compensation, Federal Security Agency, Washington, D. C.

Each such carrier will print its name at the place indicated. The note at the bottom designating the place to which the card shall be sent should be in small type, about 6 point, and if desired this designation may be printed on the back of the card. The space below the word "employer" should be sufficient to allow two additional lines of typewriting and space should be left to allow two additional lines for typing below the word

"address." The word "employer" should be about 3/4 of an inch from the top margin.

(b) In case an employer having a general insurance policy issued by one insurance carrier desires to secure a separate insurance policy from another insurance carrier limited to a particular job upon which such employer operates as a subcontractor, such separate policy may be written and reported to the deputy commissioner on the card report provided for in this section; provided the insurance carrier which reported such general insurance policy shall submit to the deputy commissioner a supplementary card report of the issuance of such policy as required by the regulations in this subchapter, upon which shall be noted, in addition to the other information called for therein, the words "Exclusive of-(naming the particular job in question)." The insurance carrier providing such separate policy in submitting to the deputy commissioner report of such policy on the report card provided for in this section shall note thereon, in addition, to the other information called for therein, the words "Limited to-(naming the particular job in question.)" The submission to the deputy commissioner and acceptance by him of such card report, by the insurance carrier issuing the general insurance policy, of the exclusion of the particular job shall serve to relieve the insurance carrier issuing such general insurance policy from liability in respect of employees covered by such separate policy only if and when the notice of the separate policy so limited shall have been received and accepted by the deputy commissioner in accordance with the provisions of the regulations in this subchapter.

§ 42.16 Report; by whom sent.

The report of issuance of a policy and endorsement provided for in § 42.15 shall be sent by the home office of the carrier, except that any carrier may authorize its agency in the District of Columbia to make such reports to the deputy commissioner, provided the carrier shall notify the deputy commissioner of the agency or agencies so duly authorized. § 42.17 Agreement to be bound by card report.

(a) Each employer (and not an insurance carrier, insurance agent, or broker) shall present to the deputy commissioner in the District of Co

lumbia the policy which he has procured in compliance with section 32 of said act (44 Stat. 1439; 33 U. S. C. 932). Any carrier so desiring may make unnecessary such presentation of such policy in any particular case by transmitting to the deputy commissioner the card report provided for by § 42.15 and in so doing the carrier shall become liable for the payment of compensation and the providing of other benefits as provided by paragraph (b) of this section.

(b) Every applicant for authority to write insurance under the provisions of the said law or for the renewal of that authority shall be deemed to have included in its application an agreement that the acceptance by the deputy commissioner of a card report of the issuance of a policy of insurance, transmitted to him pursuant to §§ 42.15, 42.16, shall bind the carrier to full liability for the obligations under said law of the employer named in the said report, regardless of whether or not such policy has been in fact issued. Every certificate of authority to write insurance under said law as provided for by § 42.6 shall be deemed to have been issued by the Bureau upon consideration of the agreement to become so bound.

§ 43.1

Employers who may be authorized as self-insurers.

The Bureau will consider for the granting of authority to secure by selfinsurance the payment of compensation under the District of Columbia workmen's compensation law (45 Stat. 600; 19 D.C. Code 11, 12) any employer who pursuant to the regulations in this subchapter furnishes to the Bureau proof satisfactory to it of his financial ability to pay such compensation directly. The following regulations in this subchapter require the deposit of security in the form either of an indemnity bond or negotiable securities (at the option of the employer) of a kind and in an amount determined by the Bureau, and prescribe the conditions under which such deposit shall be made. The term "self-insurer" as used in the regulations in this subchapter means any employer securing compensation in accordance with the provisions of section 32 (a) (2) of said law (44 Stat. 1439; 33 U. S. C. 932 (a) (2)) and the regulations in this subchapter.

§ 43.2 Application for authority to become a self-insurer; how filed; information to be submitted; other requirements.

Application for authority to become a self-insurer may be made by any employer desiring such privilege and shall be addressed to the Bureau and be made upon a form provided by the Bureau. Such application shall contain (a) a statement of the amount of employer's

payroll for the preceding 12 months; (b) a statement of the average number of employees engaged in employments within the purview of said law for the preceding 12 months; (c) a statement of the number of injuries to such employees resulting in disability of more than 7 days duration, or in death, during each of 3 years next preceding the date of the application; (d) an itemized statement of the assets and liabilities of the employer; (e) a description of the safety organization maintained by the employer for the prevention of injuries within his places of work; (f) a description of the facilities maintained or the arrangements made for the medical and hospital care of injured employees. The Bureau may in its discretion require the applicant to submit such further information or such evidence as the Bureau may deem necessary to have in order to enable it to give adequate consideration to such application. Such application shall be signed by the applicant over his typewritten name and if the applicant is not an individual, by the principal officer of the applicant duly authorized to make such application over his typewritten name and official designation and shall be sworn to by him. If the applicant is a corporation the corporate seal shall be affixed.

The application shall be filed with the Bureau. The regulations in this part shall be binding upon each applicant hereunder and the applicant's consent to be bound by all requirements of the regulations in this part shall be deemed to be included in and a part of the application, as fully as though written therein.

§ 43.3

Decision upon application of employer; deposit of negotiable securities or indemnity bond.

The decision of the Bureau to grant an application of an employer for authority to pay compensation under said law as a self-insurer will be transmitted to the applicant on a form prescribed by the Bureau. Such grant shall be conditioned upon a deposit of security in the form of an indemnity bond or of negotiable securities in an amount fixed by the Bureau, and the execution and filing of an agreement and undertaking in the form prescribed by the Bureau, as provided by 43.4.

§ 43.4 Filing of agreement and undertaking.

The applicant for the privilege of self-insurance shall as a condition precedent to receiving authorization to act as a self-insurer, execute and file with the Bureau an agreement and undertaking in a form prescribed and provided by the Bureau in which the applicant shall agree (a) to pay when due, as required by the provisions of said law, all compen~ sation payable on account of injury or death of any of his employees injured within the purview of said law; (b) in such cases to furnish medical, surgical, hospital, and other attendance, treatment and care as required by the provisions of said law; (c) to deposit with the Bureau an indemnity bond in the amount which the Bureau shall fix, or to deposit negotiable securities as provided for by the regulations in this subchapter in the amount which the Bureau shall fix, accordingly as elected in the application; (d) to authorize the Bureau to sell such negotiable securities so deposited or any part thereof and from the proceeds thereof to pay such compensation, medical, and other expense and any accrued penalties imposed by law as it may find to be due and payable.

§ 43.5 Decision upon application of employer; furnishing of indemnity bond or deposit of negotiable securities required.

The applicant for the privilege of self-insurance, as a condition precedent to receiving authorization to act as a self-insurer, shall give security for the payment of compensation and the discharge of all other obligations under the said law, in the amount fixed by the Bureau, which may be in the form of an indemnity bond with sureties satisfactory to the Bureau, or of a deposit of negotiable securities as provided in the regulations in this part. The amount of such security so to be fixed and required by the Bureau shall be such as the Bureau shall deem to be necessary and sufficient to secure the performance by the applicant of all obligations by the said law imposed upon him as an employer, but shall not be less than $15,000, if an indemnity bond is filed, or $10,000, if negotiable securities are deposited, in the case of any one employer. In fixing the amount of

such security the Bureau will take into account the financial standing of the employer, the nature of the work in which he is engaged, the hazard of the work in which the employees are employed, the pay-roll exposure, and the accident experience as shown in the application and the Bureau's records, and any other facts which it may deem pertinent. Additional security may be required at any time in the discretion of the Bureau. The indemnity bond which is required by the regulations in this part shall be in such form, and shall contain such provisions, as the Bureau may prescribe: Provided, That only corporations may act as sureties on such indemnity bonds. In each case in which the surety on any such bond is a surety company, such company must be one approved by the United States Treasury Department under the laws of the United States and the applicable rules and regulations governing bonding companies.

[4 FR. 1700, Apr. 27, 1989]

§ 43.6 Kinds of negotiable securities which may be deposited; conditions of deposit; acceptance of deposits. An applicant for the privilege of selfinsurance electing to deposit negotiable securities to secure his obligations under said act in the amount fixed by the Bureau under the regulations in this subchapter shall deposit only the following kinds of securities under the following conditions:

(a) Coupon bonds, notes, and certificates of indebtedness of the United States Government, of any issue, including interim certificates or receipts for payments therefor; all at par.

(b) Coupon bonds issued under the United States Farm Loan Act, bonds of the War Finance Corporation, bonds of Puerto Rico, and bonds and certificates of indebtedness of the Philippine Islands; all at par.

(c) The 32 percent coupon bonds of the Territory of Hawaii at 90 percent of market value; and other coupon bonds of said Territory at market value.

(d) Coupon bonds of any State of the United States, at market value; and approved notes, certificates of indebtedness, and warrants issued by any State of the United States, at 90 percent of market value.

(e) Any negotiable securities acceptable as security for the deposit of public moneys of the United States under regulations issued by the Secretary of the Treasury.

(f) No security shall be valued at more than par. No bond, obligation, or evidence of indebtedness shall be accepted if the obligor therein has made default during the past 10 years in payment of principal or interest of any bond issued by it.

(g) The approval, valuation, acceptance, and custody of such securities are hereby committed to the Treasurer of the United States acting under the direction of the Secretary of the Treasury, when authorized by this Bureau under the regulations in this subchapter to receive deposits of such securities.

CROSS REFERENCE: For Treasury regulations relating to securities acceptable as security for the deposit of public moneys, see 31 CFR 203.7, 203.8.

§ 43.7 Deposits of negotiable securities with the Treasurer of the United States; authority to sell such securities; interest thereon.

Deposits of securities provided for by the regulations in this subchapter shall be made with the Treasurer of the United States and shall be held subject to the order of the Bureau with power in the Bureau, in its discretion in the event of default by the said self-insurer, to collect the interest and the principal as they may become due, to sell the securities or any of them as may be required to discharge the obligations of the self-insurer under said act and to apply the proceeds to the payment of any compensation or medical expense for which the self-insurer may be liable. The Bureau may, however, whenever it deems it unnecessary to resort to such securities for the payment of compensation, authorize the self-insurer to collect interest on the securities deposited by him.