(a) Each insurance carrier authorized by OWCP to write insurance
under the LHWCA or any of its extensions, and each insurance carrier
seeking initial authorization to write such insurance, must apply
annually, on a schedule set by OWCP, for a determination of the extent
of its unsecured obligations and
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the security deposit required. The application must be addressed to the
Branch of Financial Management and Insurance (Branch) within OWCP's
Division of Longshore and Harbor Workers' Compensation, and be made on a
form provided by OWCP. The application must contain the following:
(1) Any carrier seeking an exemption from the security deposit
requirements based on its financial standing (see Sec. 703.204(c)(1))
must submit documentation establishing the carrier's current rating and
its rating for the immediately preceding year from each insurance rating
service designated by the Branch and posted on the Internet at http://
www.dol.gov/esa/owcp/dlhwc/lstable.htm.
(2) All other carriers, and any carrier whose exemption request
under paragraph (a)(1) of this section has been denied, must provide--
(i) A statement of the carrier's outstanding liabilities under the
LHWCA or any of its extensions for its LHWCA obligations for each State
in which the obligations arise; and
(ii) Any other information the Branch requests to enable it to give
the application adequate consideration including, but not limited to,
the reports set forth at Sec. 703.212.
(b) If the carrier disagrees with any of OWCP's findings regarding
State guaranty funds made under Sec. 703.202(b) as they exist when it
submits its application, the carrier may submit a statement of its
unsecured obligations based on a different conclusion regarding the
extent of coverage afforded by one or more State guaranty funds. The
carrier must submit evidence and/or argument with its application
sufficient to establish that such conclusion is correct.
(c) The carrier must sign and swear to the application. If the
carrier is not an individual, the carrier's duly authorized officer must
sign and swear to the application and list his or her official
designation. If the carrier is a corporation, the officer must also
affix the corporate seal.
(d) At any time after filing an application, the carrier must inform
the Branch immediately of any material changes that may have rendered
its application incomplete, inaccurate or misleading.
(e) By filing an application, the carrier consents to be bound by
and to comply with the regulations and requirements in this part.
