The regulations in this subpart set forth procedures for authorizing
employers to self-insure the payment of compensation under the Longshore
and Harbor Workers' Compensation Act, or its extensions. The Office may
authorize any employer to self-insure who,
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pursuant to the regulations in this part, furnishes to the Office
satisfactory proof of its ability to pay compensation directly, and who
agrees to immediately cancel any existing insurance policy covering its
Longshore obligations (except for excess or catastrophic workers'
compensation insurance, see Sec. Sec. 703.302(a)(6), 703.304(a)(6))
when OWCP approves the employer's application to be self-insured. The
regulations require self-insurers to deposit security in the form of an
indemnity bond, letters of credit or negotiable securities (at the
option of the employer) of a kind and in an amount determined by the
Office, and prescribe the conditions under which such deposits shall be
made. The term ``self-insurer'' as used in these regulations means any
employer securing the payment of compensation under the LHWCA or its
extensions in accordance with the provisions of 33 U.S.C. 932(a)(2) and
these regulations.
