[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: 20CFR703.305]

[Page 914]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
  CHAPTER VI--EMPLOYMENT STANDARDS ADMINISTRATION, DEPARTMENT OF LABOR
 
PART 703--INSURANCE REGULATIONS--Table of Contents
 
Sec. 703.305  Decision upon application of employer; furnishing of indemnity bond or deposit of negotiable securities required.

    The applicant for the privilege of self-insurance, as a condition 
subsequent to receiving authorization to act as self-insurer, shall give 
security for the payment of compensation and the discharge of all other 
obligations under the said Act, in the amount fixed by the Office, which 
may be in the form of an indemnity bond with sureties satisfactory to 
the Office, or of a deposit of negotiable securities as provided in the 
regulations in this part. The amount of such security so to be fixed and 
required by the Office shall be such as the Office shall deem to be 
necessary and sufficient to secure the performance by the applicant of 
all obligations imposed upon him as an employer by the Act. In fixing 
the amount of such security the Office will take into account the 
financial standing of the employer, the nature of the work in which he 
is engaged, the hazard of the work in which the employees are employed, 
the payroll exposure, and the accident experience as shown in the 
application and the Office's records, and any other facts which the 
Office may deem pertinent. Additional security may be required at any 
time in the discretion of the Office. The indemnity bond which is 
required by these regulations shall be in such form, and shall contain 
such provisions, as the Office may prescribe: Provided, That only surety 
companies approved by the United States Treasury Department under the 
laws of the United States and the rules and regulations governing 
bonding companies may act as sureties on such indemnity bonds.

[50 FR 407, Jan. 3, 1985]