[Code of Federal Regulations]
[Title 20, Volume 3]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 20CFR703.003]

[Page 908-909]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
  CHAPTER VI--EMPLOYMENT STANDARDS ADMINISTRATION, DEPARTMENT OF LABOR
 
PART 703--INSURANCE REGULATIONS--Table of Contents
 
Sec. 703.003  Failure to secure coverage; penalties.

    (a) Each employer is required to secure coverage under this Act 
either through an authorized insurance carrier or by becoming an 
authoried self-insurer. An employer who fails to secure coverage by 
either manner described in section 32(a), (1) or (2) of the Act, 33 
U.S.C. 932(a), is subject, upon conviction, to a fine of not more than 
$10,000, or by imprisonment for not more than one year, or both.

[[Page 909]]

    (1) Where the employer is a corporation: the president, secretary 
and treasurer each will also be subject to this fine and/or 
imprisonment, in addition to the fine against the corporation and each 
is personally liable, jointly with the corporation, for all compensation 
or other benefits payable under the Act during the time failure to 
secure coverage continues.
    (b) Any employer who willingly and knowingly transfers, sells, 
encumbers, assigns or in any manner disposes of, conceals, secretes, or 
destroys any property belonging to the employer after an employee 
sustains an injury covered by this Act, with the intention to avoid 
payment to that employee or his/her dependents of compensation under 
this Act shall be guilty of a misdemeanor and punished upon conviction 
by a fine of not more than $10,000 and/or imprisonment for one year.
    (1) Where the employer is a corporation: the president, secretary 
and treasurer are also each liable to imprisonment and, along with the 
corporation, jointly liable for the fine.

[50 FR 406, Jan. 3, 1985]

                   Authorization of Insurance Carriers