20 CFR Part 726.110

§ 726.107

20 CFR Ch. VI (4–1–20 Edition)

31 CFR part 225.) The approval, valuation, acceptance, and custody of such
securities is hereby committed to the
several Federal Reserve Banks and the
Treasurer of the United States.

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§ 726.107 Deposits of negotiable securities with Federal Reserve banks or
the Treasurer of the United States;
authority to sell such securities; interest thereon.
Deposits of securities provided for by
the regulations in this part shall be
made with any Federal Reserve bank
or any branch of a Federal Reserve
bank designated by the Office, or the
Treasurer of the United States, and
shall be held subject to the order of the
Office with power in the Office, in its
discretion in the event of default by
the said self-insurer, to collect the interest as it may become due, to sell the
securities or any of them as may be required to discharge the obligations of
the self-insurer under the Act and to
apply the proceeds to the payment of
any benefits or medical expenses for
which the self-insurer may be liable.
The Office may, however, whenever it
deems it unnecessary to resort to such
securities for the payment of benefits,
authorize the self-insurer to collect interest on the securities deposited by
him.
§ 726.108 Withdrawal of negotiable securities.
No withdrawal of negotiable securities deposited by a self-insurer, shall be
made except upon authorization by the
Office. A self-insurer discontinuing
business, or discontinuing operations
within the purview of the Act, or providing security for the payment of benefits by commercial insurance under
the provisions of the Act may apply to
the Office for the withdrawal of securities deposited under the regulations in
this part. With such application shall
be filed a sworn statement setting
forth:
(a) A list of all outstanding cases in
which benefits are being paid, with the
names of the miners and other beneficiaries, giving a statement of the
amounts of benefits paid and the periods for which such benefits have been
paid; and
(b) A similar list of all pending cases
in which no benefits have as yet been

paid. In such cases withdrawals may be
authorized by the Office of such securities as in the opinion of the Office may
not be necessary to provide adequate
security for the payment of outstanding and potential liabilities of
such self-insurer under the Act.
§ 726.109 Increase or reduction in the
amount of security.
Whenever in the opinion of the Office
the amount of security given by the
self-insurer is insufficient to afford
adequate security for the payment of
benefits and medical expenses under
the Act, the self-insurer shall, upon demand by the Office, file such additional
security as the Office may require. The
Office may reduce the amount of security at any time on its own initiative,
or upon the application of a self-insurer, when it believes the facts warrant a reduction. A self-insurer seeking
a reduction shall furnish such information as the Office may request relative
to his current affairs, the nature and
hazard of the work of his employees,
the amount of the payroll of his employees engaged in coal mine employment within the purview of the Act, his
financial condition, and such other evidence as may be deemed material, including a record of benefit payments he
has made.
§ 726.110 Filing of agreement and undertaking.
(a) In addition to the requirement
that adequate security be procured as
set forth in this subpart, the applicant
for the authorization to self-insure
shall, as a condition precedent to receiving such authorization, execute
and file with the Office an agreement
and undertaking in a form prescribed
and provided by the Office in which the
applicant shall agree:
(1) To pay when due, as required by
the Act, all benefits payable on account of total disability or death of
any of its employee-miners;
(2) To furnish medical, surgical, hospital, and other attendance, treatment,
and care as required by the Act;
(3) To provide security in a form approved by the Office (see § 726.104) and
in an amount established by the Office
(see § 726.105), as elected in the application;

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Office of Workers’ Compensation Programs, Labor
(4) To authorize the Office to sell any
negotiable securities so deposited or
any part thereof, and to pay from the
proceeds thereof such benefits, medical, and other expenses and any accrued penalties imposed by law as the
Office may find to be due and payable.
(b) When an applicant has provided
the requisite security, he shall send to
the Office in Washington, D.C. a completed agreement and undertaking, together with satisfactory proof that his
obligations and liabilities under the
Act have been secured.
§ 726.111 Notice
self-insure.

of

authorization

result in a revocation of the authorization to self-insure.
§ 726.113 Disclosure of confidential information.
Any financial information or records,
or other information relating to the
business of an authorized self-insurer
or applicant for the authorization of
self-insurance obtained by the Office
shall be exempt from public disclosure
to the extent provided in 5 U.S.C. 552(b)
and the applicable regulations of the
Department of Labor promulgated
thereunder. (See 29 CFR part 70.)

to

Upon receipt of a completed agreement and undertaking and satisfactory
proof that adequate security has been
provided, an applicant for authorization to self-insure shall be notified by
the Office in writing that he is authorized to self-insure to meet the obligations imposed upon him by section 415
and part C of title IV of the Act.
§ 726.112 Reports required of self-insurer; examination of accounts of
self-insurer.

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§ 726.114

(a) Each operator who has been authorized to self-insure under this part
shall submit to the Office reports containing such information as the Office
may from time to time require or prescribe.
(b) Whenever it deems it to be necessary, the Office may inspect or examine the books of account, records, and
other papers of a self-insurer for the
purpose of verifying any financial
statement submitted to the Office by
the self-insurer or verifying any information furnished to the Office in any
report required by this section, or any
other section of the regulations in this
part, and such self-insurer shall permit
the Office or its duly authorized representative to make such an inspection
or examination as the Office shall require. In lieu of this requirement the
Office may in its discretion accept an
adequate report of a certified public accountant.
(c) Failure to submit or make available any report or information requested by the Office from an authorized self-insurer pursuant to this section may, in appropriate circumstances

§ 726.114 Period of authorization as
self-insurer; reauthorization.
(a) No initial authorization to self-insure shall be granted for a period in excess of 18 months. A self-insurer who
has made an adequate deposit of negotiable securities in compliance with
§§ 726.106(c) and 726.107 will be reauthorized for the ensuing fiscal year without
additional security if the Office finds
that his experience as a self-insurer
warrants such action. If the Office determines that such self-insurer’s experience indicates a need for the deposit
of additional security, no reauthorization shall be issued for the ensuing fiscal year until the Office receives satisfactory proof that the requisite
amount of additional securities has
been deposited. A self-insurer who currently has on file an indemnity bond
will receive from the Office each year a
bond form for execution in contemplation of reauthorization, and the submission of such bond duly executed in
the amount indicated by the Office will
be deemed and treated as such self-insurer’s application for reauthorization
for the ensuing fiscal year.
(b) In each case for which there is an
approved change in the amount of security provided, a new agreement and undertaking shall be executed.
(c) Each operator authorized to selfinsure under this part shall apply for
reauthorization for any period during
which it engages in the operation of a
coal mine and for additional periods
after it ceases operating a coal mine.
Upon application by the operator, accompanied by proof that the security it
has posted is sufficient to secure all
benefits potentially payable to miners

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