(a) A self-insurer may not substitute other security for any
indemnity bond or letters of credit deposited under the regulations in
this part except when authorized by the Office. A self-insurer may,
however, substitute negotiable securities acceptable under the
regulations in this part for previously-deposited negotiable securities
without the Office's prior approval.
(b) A self-insurer discontinuing business, discontinuing operations
within the purview of the Act, or securing the payment of compensation
by commercial insurance under the provisions of the Act may apply to the
Office for the withdrawal of the security it provided under the
regulations in this part. The self-insurer must file with its
application a sworn statement setting forth--
(1) A list of all cases in each compensation district in which the
self-insurer is paying compensation, together with the names of the
employees and other beneficiaries, a description of causes of injury or
death, and a statement of the amount of compensation paid;
(2) A similar list of all pending cases in which the self-insurer
has not yet paid compensation; and
(3) A similar list of all cases in which injury or death has
occurred within one year before such application or in which the last
payment of compensation was made within one year before such
application.
(c) The Office may authorize withdrawal of previously-deposited
indemnity bonds, letters of credit and negotiable securities that, in
the opinion of the Office, are not necessary to provide adequate
security for the payment of the self-insurer's outstanding and potential
LHWCA obligations. No withdrawals will be authorized unless there has
been no claim activity involving the self-insurer for a minimum of five
years, and the Office is reasonably certain no further claims will
arise.
