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 under. taking.

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 compensation 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.

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. § 43.12 Revocation of privilege of self

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 certiflcates 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, 1938]

PART 51—GENERAL ADMINISTRATIVE PROVISIONS

Sec.

51.1 General administrative provisions. 51.2 Establishment of compensation districts.

51.8 Establishment of sub-offices; filling of reports, notices, claims, and other papers.

51.4 Prehearing conferences.

51.5 Commutation of payments in cases of aliens and non-nationals of the United States.

AUTHORITY: The provisions of this Part 51 issued under sec. 39, 44 Stat. 1442; 33 U.S.C. 939, unless otherwise noted.

SOURCE: The provisions of this Part 51 appear at 8 F.R. 4231, Apr. 3, 1943, unless otherwise noted.

(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 Stat. 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