§ 932. — Security for compensation.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 33USC932]
TITLE 33--NAVIGATION AND NAVIGABLE WATERS
CHAPTER 18--LONGSHORE AND HARBOR WORKERS' COMPENSATION
Sec. 932. Security for compensation
(a) Every employer shall secure the payment of compensation under
this chapter--
(1) By insuring and keeping insured the payment of such
compensation with any stock company or mutual company or
association, or with any other person or fund, while such person or
fund is authorized (A) under the laws of the United States or of any
State, to insure workmen's compensation, and (B) by the Secretary,
to insure payment of compensation under this chapter; or
(2) By furnishing satisfactory proof to the Secretary of his
financial ability to pay such compensation and receiving an
authorization from the Secretary to pay such compensation directly.
The Secretary may, as a condition to such authorization, require
such employer to deposit in a depository designated by the Secretary
either an indemnity bond or securities (at the option of the
employer) of a kind and in an amount determined by the Secretary,
based on the employer's financial condition, the employer's previous
record of payments, and other relevant factors, and subject to such
conditions as the Secretary may prescribe, which shall include
authorization to the Secretary in case of default to sell any such
securities sufficient to pay compensation awards or to bring suit
upon such bonds, to procure prompt payment of compensation under
this chapter. Any employer securing compensation in accordance with
the provisions of this paragraph shall be known as a self-insurer.
(b) In granting authorization to any carrier to insure payment of
compensation under this chapter the Secretary may take into
consideration the recommendation of any State authority having
supervision over carriers or over workmen's compensation, and may
authorize any carrier to insure the payment of compensation under this
chapter in a limited territory. Any marine protection and indemnity
mutual insurance corporation or association, authorized to write
insurance against liability for loss or damage from personal injury and
death, and for other losses and damages, incidental to or in respect of
the ownership, operation, or chartering of vessels on a mutual
assessment plan, shall be deemed a qualified carrier to insure
compensation under this chapter. The Secretary may suspend or revoke any
such authorization for good cause shown after a hearing at which the
carrier shall be entitled to be heard in person or by counsel and to
present evidence. No suspension or revocation shall affect the liability
of any carrier already incurred.
(Mar. 4, 1927, ch. 509, Sec. 32, 44 Stat. 1439; Pub. L. 98-426,
Secs. 20, 27(a)(2), Sept. 28, 1984, 98 Stat. 1652, 1654.)
Amendments
1984--Subsec. (a)(1). Pub. L. 98-426, Sec. 27(a)(2), substituted
``Secretary'' for ``commission''. See Transfer of Functions note set out
under section 902 of this title.
Subsec. (a)(2). Pub. L. 98-426, Sec. 20, inserted ``based on the
employer's financial condition, the employer's previous record of
payments, and other relevant factors,'' after ``in an amount determined
by the commission,''.
Pub. L. 98-426, Sec. 27(a)(2), substituted ``Secretary'' for
``commission''. See Transfer of Functions note set out under section 902
of this title.
Subsec. (b). Pub. L. 98-426, Sec. 27(a)(2), substituted
``Secretary'' for ``commission''. See Transfer of Functions note set out
under section 902 of this title.
Effective Date of 1984 Amendment
Amendment by Pub. L. 98-426 effective Sept. 28, 1984, see section
28(e)(1) of Pub. L. 98-426, set out as a note under section 901 of this
title.
Section Referred to in Other Sections
This section is referred to in section 908 of this title; title 8
section 1288.
