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.