(a) Whenever the Office considers the principal sum of the indemnity
bond or letters of credit filed or the amount of the negotiable
securities deposited by a self-insurer insufficient to fully secure the
self-insurer's LHWCA obligations, the self-insurer must, upon demand by
the Office, deposit additional security
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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. 703.303, and the procedures set forth
at Sec. Sec. 703.303(d) and 703.304 for requesting a hearing and
complying with the Office's decision will apply as appropriate.
(b) The Office may reduce the required security at any time on its
own initiative, or upon application of a self-insurer, when in the
Office's opinion the facts warrant a reduction. A self-insurer seeking a
reduction must furnish any information the Office requests regarding its
current affairs, the nature and hazard of the work of its employees, the
amount of its payroll for employees engaged in maritime employment
within the purview of the Act, its financial condition, its accident
experience, a record of compensation payments it has made, and any other
evidence the Branch considers necessary.
