law, or providing security for the payment of compensation by insurance under the provisions of said law may apply to the Bureau for the withdrawal of securities deposited under the regulations in this subchapter. With such application shall be filed a sworn statement setting forth (a) a list of all outstanding cases in which compensation is being paid, with the names of the employees and other beneficiaries, giving a description of causes of injury or death, and a statement of the amount of compensation paid; (b) a similar list of all pending cases in which no compensation has as yet been paid; and (c) a similar list of all cases in which injury or death has occurred within 1 year prior to such application or in which the last payment of compensation was made within 1 year prior to such application. In such cases withdrawals may be authorized by the Bureau of such securities as in the opinion of the Bureau may not be necessary to provide adequate security for the payment of outstanding and potential liabilities of such self-insurer under said law. § 43.9

Increase or reduction in the amount of indemnity bond or negotiable securities.

Whenever in the opinion of the Bureau the principal sum of the indemnity bond filed or the amount of negotiable securities deposited by a self-insurer is insufficient to afford adequate security for the payment of compensation and medical expenses under said law, the self-insurer shall, upon demand by the Bureau, file such additional indemnity bond or deposit under the regulations in this subchapter such additional amount of negotiable securities as the Bureau may require. At any time upon application of a self-insurer, or on the initiative of the Bureau, when in its opinion the facts warrant, the principal sum of an indemnity bond required to be given or the amount of negotiable securities required to be deposited may be reduced, but not beyond the minimums fixed in § 43.5. A self-insurer seeking such reduction shall furnish such information as the Bureau may request relative to his current affairs, the nature and hazard of the work of his employees, the amount of the pay roll of his employees within the purview of the said law, his financial condition, his accident

experience, and such other evidence as may be deemed material, including a record of payments of compensation made by him.

§ 43.10 Reports required of self-insurers; examination of accounts of self-insurers.

At such times as the Bureau may require or prescribe, each self-insurer shall submit such of the following reports as may be requested:

(a) A sworn itemized statement of the self-insurer's assets and liabilities, or a balance sheet.

(b) A sworn statement showing by classifications the pay roll of employees of the self-insurer who are engaged in employments within the purview of the said law.

(c) A sworn statement of payments of compensation in current cases during any specified quarter, showing the nature of injury in each case.

(d) A sworn statement covering the 6 months period preceding the date of such report, listing all death and injury cases which have occurred during such period, together with a report of the status of all outstanding claims, showing the particulars of each case.

Whenever it deems it to be necessary, the Bureau may inspect or examine the books of account, records, and other papers of a self-insurer for the purpose of verifying any financial statement submitted to the Bureau by such self-insurer or verifying any information furnished to the Bureau in any report required by this section, or any other section of the regulations in this subchapter, and such self-insurer shall permit the Bureau or its duly authorized representative to make such an inspection or examination as the Bureau shall require. In lieu of this requirement the Bureau may in its discretion accept an adequate report of a certified public accountant. § 43.11

Period of authorization as selfinsurer; renewals.

No initial authorization as a self-insurer shall be granted for a period in excess of 18 months, and the expiration date thereof shall fall on the 30th day of June. A self-insurer who has made an adequate deposit of negotiable securities as required by the Bureau under the

regulations in this subchapter will be reauthorized for the ensuing fiscal year without additional security if the Bureau finds that his experience as a self-insurer warrants such action. A self-insurer who currently has on file an indemnity bond, will receive from the Bureau on or about May 10 of each year a bond form for execution in contemplation of reauthorization, and the submission of such bond duly executed in the amount indicated by the Bureau will be deemed and treated as such self-insurer's application for reauthorization for the ensuing fiscal year; the privilege of such self-insurer will, however, terminate with the termination of his current authorization unless such duly executed indemnity bond be submitted not later than June 30.

PART 44 ISSUANCE OF CERTIFICATES OF COMPLIANCE

Sec. 44.1 Issuance of certificates of compliance. 44.2 Return of certificates of compliance. § 44.1

Issuance of certificates of compliance.

(a) Every employer who has secured the payment of compensation by obtaining a policy of insurance as provided by section 32 of said act (44 Stat. 1439; 33 U.S.C. 939) and by Part 42 of this subchapter will receive from the deputy commissioner a certificate that such employer has secured the payment of such compensation. Only one such certificate will be issued to an employer and it will be valid only during the period for which such employer has secured such payment. A certificate of compliance

will be issued by the deputy commissioner to any employer (1) upon presentation by such employer (and not by an insurance carrier, insurance agent, or broker) of a policy of insurance, and endorsement thereon, issued to the employer in conformity with Part 42 of this subchapter, by an authorized insurance carrier, or (2) upon receipt by the deputy commissioner and acceptance by him of a card report of the issuance of such a policy to such an employer as provided by §§ 42.1542.17 of this subchapter.

(b) Every employer who has been granted the privilege of self-insurance as provided by section 32 of said act and by Part 43 of this subchapter will receive from the Bureau a certificate that he has complied with the said law with respect to the securing of the payment of compensation. Only one such certificate will be issued to an employer and it will be valid only during the period stated in such certificate.

(Sec. 39, 44 Stat. 1442; 33 U. S. C. 939.) [Regs. May 31, 1938]

§ 44.2

Return of certificates of compliance.

Upon the termination by expiration, cancellation or otherwise, of a policy of insurance issued under the provisions of said act and the regulations in this subchapter. or the revocation or termination of the privilege of self-insurance granted by the Bureau, all certifcates of compliance issued on the basis of such insurance or self-insurance shall be void and shall be returned by the employer to the deputy commissioner or to the Bureau with a statement of the reason for such return. An employer holding a certificate of compliance under an insurance policy which has expired, pending renewal of such insurance need not return such certificate of compliance if such expired insurance is promptly replaced. An employer who has secured renewal of insurance upon the expiration of a policy under said act or whose selfinsurance thereunder is reauthorized without a break in the continuity thereof need not return an expired certificate of compliance.

(Sec. 39, 44 Stat. 1442; 33 U. S. C. 939.) [Regs, May 31, 1988]

(a) Except as herein modified, the regulations in Subchapter C of this chapter, governing the administration of the Longshoremen's and Harbor Workers' Compensation Act (44 Stat. 1424; 33 U.S.C. 901 et seq.), shall so far as not inapplicable govern the administration of Public Law No. 208, 77th Congress, approved August 16, 1941, as amended (55 Stat. 622; 42 U.S.C. 1651), extending the Longshoremen's and Harbor Workers' Compensation Act to persons engaged in employment at military, air, and naval bases, upon lands occupied and used for military or naval purposes, or under public works contracts, outside continental United States, and every person subject to, claiming benefits under, or acting under, the said public law, as amended, shall conform to the procedure prescribed in the Longshoremen's and Harbor Workers' Compensation Act and in the regulations under Subchapter C and this subchapter. The term "Bureau" as used in this subchapter means the Bureau of Employees' Compensation, United States Department of Labor. The said Bureau is the agency which was transferred from the Federal Security Agency to the United States Department of Labor by Reorganization Plan No. 19 of 1950 (3 CFR, 1949-1953 Comp., p. 1010; 64 £tat. 1271) effective May 24, 1950, the said Bureau having been established in the Federal

Security Agency to perform the functions theretofore performed by the United States Employees' Compensation Commission, the latter having been abolished and its functions transferred to the Federal Security Agency by Reorganization Plan No. 2 of 1946 (3 CFR, 1943-1948 Comp., p. 1064; 60 Stat. 1095), effective July 16, 1946.

(b) The said Public Law No. 208, as amended, applies in respect to the injury or death of any employee engaged in any employment (1) at any military. air, or naval base acquired after January 1, 1940, by the United States from any foreign government; or (2) upon any lands occupied or used by the United States for military or naval purposes in any Territory or possession outside the continental United States (including Alaska; the Philippine Islands; the United States Naval Operating Base, Guantanamo Bay, Cuba; and the Canal Zone); or (3) upon any public work in any Territory or possession outside the continental United States (including Alaska; the Philippine Islands; the United States Naval Operating Base, Guantanamo Bay, Cuba; and the Canal Zone), if the employee is engaged in employment at such place under the contract of a contractor (or any subcontractor or subordinate contractor with respect to the contract of such contractor) with the United States (but excluding any employee of such contractor or subcontractor who is engaged exclusively in furnishing materials or supplies under his contract); or (4) under a contract entered into with the United States or any executive department, independent establishment, or agency thereof (including any corporate instrumentality of the United States), or any subcontract or subordinate contract with respect to such contract, where such contract is to be performed outside the continental United States and at places not within the areas above described under subparagraphs (1), (2) and (3) of this paragraph, for the purpose of engaging in public work (but excluding any employee of such contractor or subcontractor who is engaged exclusively in furnishing materials or supplies under his contract). Such Public Law, as amended, applies with respect to injuries occurring during

employment at such places, irrespective of the place where the injury or death occurs, and includes any injury or death occurring to any such employee during transportation to or from his place of employment, where the employer or the United States provides the transportation or the cost thereof.

(c) The term "public work" as used in paragraph (b) (3) and (4) of this section means any fixed improvement or any project involving construction, alteration, removal, or repair for public use of the United States or its allies, including but not limited to projects in connection with the war effort, dredging, harbor improvements, dams, roadways, and housing, as well as preparatory and ancillary work in connection therewith at the site or on the project. A "contractor," as used in the same reference, means any individual, partnership, corporation, or association, and includes any trustee, receiver, assignee, successor, or personal representative thereof.

(d) The said public law, as amended, does not apply in respect to the injury or death of (1) an employee subject to the provisions of the act entitled "An Act to provide compensation for employees of the United States suffering injuries while in the performance of their duties, and for other purposes", approved September 7, 1916 (39 Stat. 742; 5 U. S. C. 751-793), as amended; (2) an employee engaged in agriculture, domestic service, or any employment that is casual and not in the usual course of the trade, business, or profession of the employer; or (3) a master or member of a crew of any vessel. (Certain other exclusions with respect to any employee of a contractor, engaged exclusively in furnishing materials or supplies, are referred to under paragraph (b) 3) and (4) of this section.)

(1950 Reorg. Plan No. 19, § 1, 3 CFR, 1949-53 Comp., p. 1010; 64 Stat. 1271) [8 F.R. 4231, Apr. 3, 1943, as amended at 25 F.R. 10794, Nov. 15, 1960]

tricts established under § 31.2 of Subchapter C of this chapter:

(1) [Reserved]

(2) Pacific District. This district comprises all land and water areas outside the continents of North and South America which are south of the 45th degree north latitude and westward from the 110th degree west longitude to the 60th degree east longitude, except areas in the North Atlantic Ocean and contiguous waters, with headquarters at Honolulu, T. H.

(3) Foreign District. This district comprises the areas outside continental United States not included in any compensation district established in this section, with headquarters at New York, N. Y.

(4) District No. 1. This district as established under the Longshoremen's and Harbor Workers' Compensation Act is extended to include Canada east of the 75th degree west longitude, Newfoundland and Greenland, with headquarters at Boston, Mass.

(5) District No. 2. This district as established under the Longshoremen's and Harbor Workers' Compensation Act is extended to include Bermuda, with headquarters at New York, N. Y.

(6) District No. 10. This district as established under the Longshoremen's and Harbor Workers' Compensation Act is extended to include Canada west of the 75th degree and east of the 110th degree west longitude with headquarters at Chicago, Ill.

(7) District No. 14. This district as established under the Longshoremen's and Harbor Workers' Compensation Act is extended to include all land areas in the Pacific Ocean north of the 45th degree north latitude, Canada west of the 110th degree west longitude, and Alaska, with headquarters at Seattle, Wash.

(e) [Reserved]

(b) In the administration of such act of August 16, 1941 (55 Stat. 622; 42 U.S.C. Sup., 1651), as amended, and as administrative exigencies from time to time require, the Bureau by administrative order may establish areas outside the United States (or change or modify any areas so established), whether or not they are included within an established compensation district, designating them as "jurisdictional areas," and include such areas within the jurisdiction of any compensation district, and the deputy commissioner thereof, as established by paragraph (a) of this section or as estab

lished by 31.2 of Subchapter C of this chapter, for the administration of such Public Law by the deputy commissioner. [8. F.R. 4231, Apr. 3, 1943, as amended at 10 F.R. 9996, Aug. 14, 1945; 15 F.R. 6784, Oct. 7, 1950; 19 F.R. 413, Jan. 23, 1954]

§ 51.3

Establishment

of sub-offices;

filing of reports, notices, claims, and other papers.

(a) As administrative exigencies from time to time require, the Bureau may by administrative order establish within compensation districts (or jurisdictional areas of such districts) under said act of August 16, 1941, as amended, a suboffice or sub-offices in each such district (or area thereof), to be in charge of an assistant deputy commissioner, claims examiner or other designated person, who shall be under the administrative supervision of the deputy commissioner for the particular compensation district.

(b) Where a sub-office or sub-offices have been established by the Bureau pursuant to this section, report by the employer of injury or death, notice of injury or death, claim for compensation, and application for review of a compensation case as required, respectively, under §§ 31.3, 31.4, 31.5 and 31.16 of Subchapter C of this chapter, together with all correspondence and supplementary or other reports relative thereto, in a case arising within the area served by such sub-office, may be filled at the sub-office of the deputy commissioner for such place. Reports in cases arising at other places within a compensation district or jurisdictional area of such district may be filed with the deputy commissioner in charge thereof, at his headquarters.

(c) The files in individual cases arising within the area served by any such sub-office of the deputy commissioner shall remain at the sub-office until the case is closed, final action is taken, or the employee is transferred, after which they shall be sent to the headquarters of the deputy commissioner. All applications pertaining to benefits and other moving papers may be filled in such suboffice, if the case is pending in such sub-office, unless otherwise directed by the deputy commissioners.

(Sec. 19 (a), 44 Stat. 1435; 33 U.S.C. 919 (a)) § 51.4 Prehearing conferences.

(a) In order to expedite and simplify formal administrative proceedings, in all cases in which there are issues of fact or law, and, whenever practicable,

no formal hearings will be set until after prehearing conferences. Such conferences may be held by the deputy commissioner, assistant deputy commissioner, a claims examiner or other person designated for such purpose by the deputy commissioner or the assistant deputy commissioner.

(b) The purposes of such prehearing conferences are (1) amicably to dispose of controversies wherever possible; (2) to narrow issues; and (3) to simplify the subsequent methods of proof.

(c) Prehearing conferences may be set upon 10 days' notice to the parties in interest (or a longer period if the circumstances require, or shorter period if agreed upon by the parties). They shall be kept characteristically informal, and shall not be stenographically reported. It shall be the duty of the deputy commissioner, assistant deputy commissioner, claim examiner or other person in charge of the conference to guide the discussion toward the achievement of the purposes of such conference, giving the parties the benefit of his specialized knowledge and experience.

(d) At the termination of such conferences the person in charge thereof shall prepare stipulations, for the signatures of the parties, covering agreements as to all or part of the facts, admissions, narrowing of issues, or simplification of methods of proof. Such stipulations when signed by the parties in interest shall be made and become part of the formal record of the case. Where stipulations relate to evidence to be used at a later formal hearing, such evidence may then be received as such evidence and appropriately identified by marking such evidence, respectively, as claimant's or respondents' exhibits, consecutively numbered in each respect. At the termination of such a conference, the person in charge thereof shall prepare for the file in the case a memorandum setting forth the purpose for which the conference was held, the matters discussed and the results achieved. Should a conference terminate without complete achievement of the purpose thereof, and the remaining issue or issues be of such character as not to present a difficult basis for adjustment by amicable agreement of the interested parties, the person in charge, after review of the record of the case, may by letter addressed to the parties in interest make his recommendation to dispose of the matter in controversy, setting a date for reply