(a) Whenever the Office considers the security deposited by an
insurance carrier insufficient to fully secure the carrier's LHWCA
obligations, the carrier must, upon demand by the Branch, deposit
additional security in accordance with the regulations in this part in
an amount fixed by the Branch. The Branch will issue its decision
requiring additional security in accordance with Sec. 703.204, and the
procedures set forth at Sec. Sec. 703.204(d) and 703.205 for requesting
a hearing and complying with the Office's decision will apply as
appropriate.
(b) The Branch may reduce the required security at any time on its
own initiative, or upon application of a carrier, when in the Branch's
opinion the
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facts warrant a reduction. A carrier seeking a reduction must furnish
any information the Office requests regarding its outstanding LHWCA
obligations for any State in which it does business, its obligations not
secured by a State guaranty fund in each of these States, and any other
evidence as the Branch considers necessary.
