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U.S. Code as of:
01/19/04
Section 932. Security for compensation
(a) Every employer shall secure the payment of compensation under
this chapter -
(1) By insuring and keeping insured the payment of such
compensation with any stock company or mutual company or
association, or with any other person or fund, while such person
or fund is authorized (A) under the laws of the United States or
of any State, to insure workmen's compensation, and (B) by the
Secretary, to insure payment of compensation under this chapter;
or
(2) By furnishing satisfactory proof to the Secretary of his
financial ability to pay such compensation and receiving an
authorization from the Secretary to pay such compensation
directly. The Secretary may, as a condition to such
authorization, require such employer to deposit in a depository
designated by the Secretary either an indemnity bond or
securities (at the option of the employer) of a kind and in an
amount determined by the Secretary, based on the employer's
financial condition, the employer's previous record of payments,
and other relevant factors, and subject to such conditions as the
Secretary may prescribe, which shall include authorization to the
Secretary in case of default to sell any such securities
sufficient to pay compensation awards or to bring suit upon such
bonds, to procure prompt payment of compensation under this
chapter. Any employer securing compensation in accordance with
the provisions of this paragraph shall be known as a
self-insurer.
(b) In granting authorization to any carrier to insure payment of
compensation under this chapter the Secretary may take into
consideration the recommendation of any State authority having
supervision over carriers or over workmen's compensation, and may
authorize any carrier to insure the payment of compensation under
this chapter in a limited territory. Any marine protection and
indemnity mutual insurance corporation or association, authorized
to write insurance against liability for loss or damage from
personal injury and death, and for other losses and damages,
incidental to or in respect of the ownership, operation, or
chartering of vessels on a mutual assessment plan, shall be deemed
a qualified carrier to insure compensation under this chapter. The
Secretary may suspend or revoke any such authorization for good
cause shown after a hearing at which the carrier shall be entitled
to be heard in person or by counsel and to present evidence. No
suspension or revocation shall affect the liability of any carrier
already incurred.
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