(a) A carrier may not substitute other security for any indemnity
bond or letters of credit deposited under the regulations in this part
except when authorized by the Branch. A carrier may, however, substitute
negotiable securities acceptable under the regulations in this part for
previously-deposited negotiable securities without the Branch's prior
approval.
(b) A carrier that has ceased to write insurance under the Act may
apply to the Branch for withdrawal of its security deposit. The carrier
must file with its application a sworn statement setting forth--
(1) A list of all cases in each State in which the carrier is paying
compensation, together with the names of the employees and other
beneficiaries, a description of causes of injury or death, and a
statement of the amount of compensation paid;
(2) A similar list of all pending cases in which the carrier has not
yet paid compensation; and
(3) A similar list of all cases in which injury or death has
occurred within one year before such application or in which the last
payment of compensation was made within one year before such
application.
(c) The Branch may authorize withdrawal of previously-deposited
indemnity bonds, letters of credit and negotiable securities that, in
the opinion of the Branch, are not necessary to provide adequate
security for the payment of the carrier's outstanding and potential
LHWCA liabilities. No withdrawals will be authorized unless there has
been no claim activity involving the carrier for a minimum of five
years, and the Branch is reasonably certain that no further claims will
arise.
