20 Cfr 726.110

Federal Register / Vol. 65, No. 245 / Wednesday, December 20, 2000 / Rules and Regulations
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 selfinsurer 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 selfinsurer 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

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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;
(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
insure.

Notice of authorization to self-

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.

(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,

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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 selfinsurer pursuant to this section may, in
appropriate circumstances result in a
revocation of the authorization to selfinsure.
§ 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 selfinsurance 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.)
§ 726.114 Period of authorization as selfinsurer; reauthorization.

(a) No initial authorization to selfinsure 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 selfinsurer warrants such action. If the
Office determines that such selfinsurer’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

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