(a) In determining the amount of a carrier's required security
deposit, the Office will consider the extent to which a State guaranty
fund secures the insurance carrier's LHWCA obligations in that State.
When evaluating State guaranty funds, the Office may consider a number
of factors including, but not limited to--
(1) Limits on weekly benefit amounts;
(2) Limits on aggregate maximum benefit amounts;
(3) Time limits on coverage;
(4) Ocean marine exclusions;
(5) Employer size and viability provisions; and
(6) Financial strength of the State guaranty fund itself.
(b) OWCP will identify States without guaranty funds and States with
guaranty funds that do not fully and immediately secure LHWCA
obligations and will post its findings on the Internet at http://
www.dol.gov/esa/owcp/dlhwc/lstable.htm. These findings will indicate the
extent of any partial or total gap in coverage provided by a State
guaranty fund, and they will be open for inspection and comment by all
interested parties. If the extent of coverage a particular State
guaranty fund provides either cannot be determined or is ambiguous, OWCP
will deem one third (33\1/3\ percent) of a carrier's LHWCA obligations
in that State to be unsecured. OWCP will revise its findings from time
to time, in response to substantiated public comments it receives or for
any other reasons it considers relevant.
