approved by the deputy commissioner, and any claim so approved shall, in the manner and to the extent fixed by the deputy commissioner, be a lien upon such compensation. No contract for a stipulated fee or for a fee on a contingent basis will be recognized by the deputy commissioner, and no fee for services shall be approved except upon an application to the deputy commissioner supported by a sufficient statement of the extent and character of the necessary work done on behalf of the claimant. Except where the claimant has been advised that such representation will be rendered gratuitously, the fee approved by the deputy commission shall be reasonably commensurate with the actual necessary work performed by such representative, taking into account the capacity in which the representative has appeared, the amount of compensation involved and the circumstances of the claimant.

(c) Any person (1) who receives any fee, other consideration, or any gratuity on account of services so rendered, other than the fee approved by the deputy commissioner, or (2) who makes it a business to solicit employment for another person or for himself in respect of any claim or award for compensation may be certified to the United States attorney for prosecution under section 28 (b) of said act (44 Stat 1438; 33 U. S. C. 928 (b)).

§ 31.22 Availability of records for inspection.

Any party in interest may be permitted to examine the record of the case in which he is interested. The deputy commissioner, however, shall be the judge of the reasonableness of any such request and may in his discretion deny inspection of any such record or part thereof which in his opinion may result in damage or harm to the beneficiary or to any other person, or which may be inimical to the interests of the Bureau or of the United States. The original record in any such case shall not be removed from the office of the deputy commissioner for such inspection.

§ 31.23 Employer's record of injury or death.

Every employer shall keep a record in respect of any injury to an employee. The record shall contain information of disease, other disability, or death in respect of such injury and shall be

available to inspection by the Bureau or by any State authority.

(Sec. 29, 44 Stat. 1438; 33 U. S. C. 929)

§ 31.24 Transfer of cases.

(a) At any time after a claim has been filed with him, the deputy commissioner may, with the approval of the Bureau, transfer such case to any other deputy commissioner for the purpose of making investigation, taking testimony, making physical examinations or taking such other necessary action therein as may be directed.

(b) Request for approval of such a transfer of a case may be made by letter to the Bureau in which the deputy commissioner shall set forth fully the purpose of such transfer. If such transfer should be approved by the Bureau, the deputy commissioner making the transfer shall by letter to the deputy commissioner to whom the case is transferred give such advice, comments, suggestions or directions as may be needed under the circumstances of the particular case, transmitting to the Bureau a copy of such letter. The file of the deputy commissioner, including transcripts of testimony, may be sent to the deputy commissioner to whom the case is transferred, if necessary, for proper action by him. All official papers should be sent by registered mail.

[4 F.R. 1698, Apr. 27, 1939]

§ 31.25 Assessment of civil penalties.

In any case under said act in which a civil penalty is provided for in which it should appear that there has been a failure to perform a statutory obligation, for which failure the said act subjects an employer or carrier to the imposition of a civil penalty, the deputy commissioner shall make full report to the Bureau of the facts relating to such apparent failure and shall therein make his recommendation as to the assessment of such penalty. The Bureau upon ascertaining that there has been such failure will call upon the offending employer or carrier to show cause, within a reasonable time stated, why such civil penalty should not be assessed by the Bureau. § 31.26 Agreed settlements.

(a) In cases under section 8(c) (21) and section 8(e) of said act, whenever the deputy commissioner determines that it is for the best interests of an injured employee entitled to compensation, he may, with the approval of the Bureau,

approve agreed settlements of the interested parties, discharging the liability of the employer for such compensation, notwithstanding the provisions of section 15 (b) and section 16 of said act: Provided, That the sum so agreed upon shall be payable in instalments as provided in section 14 (b) of said act, which instalments shall be subject to commutation under section 14 (j) of said act: And provided further, That if the employee should die from causes other than the injury after the Bureau has approved an agreed settlement, the sum so approved shall be payable, in the manner herein prescribed, to and for the benefit of the persons enumerated in section 8 (d) of said act.

(b) Application for approval of an agreed settlement under section 8 (i) of the said act shall be made in writing to the deputy commissioner by the parties in interest. The application shall set forth fully all facts necessary to disclose the status of the case and the reason for seeking approval of an agreed settlement under said section, as well as the specific terms of such agreed settlement, and shall be accompanied by a report of examination of the employee, if a recent report is not of record in the office of the deputy commissioner. Such application, including all supporting papers, shall be submitted in duplicate.

(c) If the case is one coming within the purview of section 8 (c) (21) or section 8 (e) of said act, and the deputy commissioner should determine that the proposed agreed settlement according to such application is for the best interests of the injured employee, the deputy commissioner shall transmit to the Bureau a copy of the proposed agreed settlement, together with a statement of his recommendation to such effect.

The

deputy commissioner shall transmit to the Bureau his complete file in the case. All papers shall be sent by registered mail. If the disability as found in the last compensation order filed in the case is not of such character and quality as to bring the case within the purview of section 8 (c) (21) or section 8 (e), the deputy commissioner shall file a compensation order making necessary findings of fact relative to the character and quality of disability and to the current wage-earning capacity of the employee. If such course is not practical, the deputy commissioner may in his communication advise the Bureau with respect to the probable character

and quality of disability according to the most recent evidence received and shall inform the Bureau of the probable current wage-earning capacity of the employee. With such recommendation the deputy commissioner shall submit such other information as may bear upon the advisability of approving the agreed settlement.

(d) Section 8 (i) was intended to furnish a legal basis for agreement as to the payment of compensation for probable future disability, principally in cases in which the symptoms of disability are largely subjective, the extent of loss of wage-earning capacity due to such disability is difficult to determine, and where the compensation rate is likely to fluctuate and be subject to change over long periods of time. This section was not intended to furnish generally a basis for the settlement of claims or as a mere convenience in disposing of

AUTHORITY: The provisions of this Part 32 issued under sec. 39, 44 Stat. 1442; 33 U.S.C. 939, unless otherwise noted.

SOURCE: The provisions of this Part 32 contained in Regulations under the Longshoremen's and Harbor Workers' Compensation Act, May 31, 1938, unless otherwise noted.

§ 32.1 Types of companies which may be authorized by the Bureau.

The Bureau will consider for the granting of authority to write insurance under the Longshoremen's and Harbor Workers' Compensation Act (44 Stat. 1424; 33 U.S.C. Chapter 18) the application of any stock company, mutual company or association, or any other person or fund, while authorized under the laws of the United States or of any State to insure workmen's compensation. The term "carrier" as used in this part means any person or fund duly authorized to insure workmen's compensation benefits under said act.

§ 32.2

to

Applications for authority write insurance; how filed; evidence to be submitted; other requirements. An application for authority to write insurance under this act shall be made in writing, signed by the principal officer of the applicant duly authorized to make such application, and transmitted to the Bureau of Employees' Compensation, United States Department of Labor. Such application shall be accompanied by full and complete information regarding the history and experience of such applicant in the writing of workmen's compensation insurance, together with evidence that it has authority in its charter or form of organization to write such insurance, and evidence that the applicant is currently authorized to insure workmen's compensation liability under the laws of the United States or of any State. The statements of fact in each application and in the supporting evidence shall be verified by the oath of the officer of the applicant who signs such application. Each applicant shall state in its application the places at which it intends to do business. In connection with any such application the following shall be submitted, the Bureau reserving the right to call for such additional information as it may deem necessary in any particular case:

(a) A copy of the last annual report made by the applicant to the insurance department or other authority of the

State in which it is incorporated, or to the insurance department of the State of New York, or the State in which its principal business is done.

(b) A certified copy from the proper State authorities of the paper purporting to show the action taken upon such report, or such other evidence as the applicant may care to submit in respect of such report, which may obviate delay incident to an inquiry by the Bureau of the State authorities relative to the standing and responsibility of the applicant.

(c) If not otherwise shown, the applicant shall furnish a full and complete statement of its financial condition, and, if a stock company, shall show specifically its capital stock and surplus.

(d) A copy of its charter or other formal outline of its organization, its rules, its by-laws, and other documents, writings, or agreements by and under which it does business, and such other evidence as it may deem proper to make a full exposition of its affairs and financial condition.

§ 32.3

Stock companies holding Treasury certificates of authority.

A stock company furnishing evidence that it is authorized to write workmen's compensation insurance under the laws of the United States or of any State, which holds a certificate of authority from the Secretary of the Treasury as an acceptable surety on Federal bonds, unless requested to do so, need not transmit to the Bureau with its application copies of such financial reports as are on file in the Department of the Treasury. The acceptance by said Department of such a company will be considered by the Bureau in conjunction with the application of such company provided there has been compliance with the other requirements of the regulations in this subchapter.

§ 32.4 Applicants currently authorized to write insurance under the District of Columbia workmen's compensation law.

Any applicant currently authorized by the Bureau to write insurance under the District of Columbia workmen's compensation law (45 Stat. 600; 19 D.C. Code 11, 12) need not support its application with the evidence required by the regulations in this subchapter, except the form of policy and endorsement which it proposes to use, unless specifically re

quested by the Bureau, but instead its application may refer to the fact that it has been so authorized.

§ 32.5

Copies of forms of policies to be submitted with application.

With each application for authority to write insurance there shall be submitted for the approval of the Bureau copies of the forms of policies which the applicant proposes to issue in writing insurance under the Longshoremen's Act, to which shall be attached the Longshoremen's endorsement to be used in connection therewith as provided for in § 32.9.

§ 32.6 Certificate of authority to write insurance.

No corporation, company, association, person, or fund shall write insurance under said act without first having received from the Bureau a certificate of authority to write such insurance. Any such certificate issued by the Bureau, after application therefor as provided by these regulations, may authorize the applicant to write such insurance in a limited territory as determined by the Bureau. The Bureau may suspend or revoke any such certificate prior to its expiration, for good cause shown, after a hearing if applied for or deemed necessary, but no suspension or revocation shall affect the liability of any carrier already incurred.

§ 32.7 Period of certificate of authority.

No certificate of authority to write insurance under said act and the regulations in this subchapter shall be issued by the Bureau for a period in excess of 18 months and the expiration date thereof, which shall be stated in the certificate of authority, shall fall on the 30th day of June.

§ 32.8 Applications for reauthorization.

Any carrier holding an unexpired certificate of authority and desiring reauthorization to write insurance for the period of a year from the expiration of such certificate shall apply to the Bureau by letter over the signature of its principal officer for such a certificate of authority. No evidence of the financial condition of such carrier need be furnished with such application unless requested by the Bureau after the application is received. The Bureau may require such carrier to submit for the Bureau's consideration in connection with such reauthorization evidence or

explanation relating to the experience and practice of such carrier in the conduct of its affairs with respect to the said act or with reference to the fidelity and punctuality of the performance by such carrier of its past or current obligations under the law. Such application, to avoid break in the period of authorization of the carrier to write such insurance, should be filed with the Bureau not later than June 1 of each year.

§ 32.9 Longshoremen's endorsement.

(a) The following form of endorsement applicable to the standard workmen's compensation and employer's liability policy, shall be used with the form of policy approved by the Bureau for use by an authorized carrier:

For attachment to Policy No.

The obligations of paragraph one (a) of the policy include the Longshoremen's and Harbor Workers' Compensation Act, being Public Act No. 803 of the 69th Congress, approved March 4, 1927, and all laws amendatory thereof or supplementary thereto which may be or become effective while this policy is in force.

The company will carry out the provisions of section 35 of said act. Insolvency or bankruptcy of the employer and/or discharge therein shall not relieve the Company from payment of compensation and other benefits lawfully due for disability or death sustained by an employee during the life of the policy.

The Company agrees to abide by all the provisions of this act and all lawful rules, regulations, orders, and decisions of the Bureau of Employees' Compensation, Federal Security agency, and of the deputy commissioner, having jurisdiction, unless and until set aside, modified, or reversed by a court having jurisdiction of the parties and the subject matter.

This endorsement shall not be canceled prior to the date specified in this policy for its expiration until at least thirty days have elapsed after a notice of cancelation has been sent to the Deputy Commissioner and to this Employer.

All terms, conditions, requirements, and obligations expressed in this policy or in any other endorsement attached thereto which are not inconsistent with or inapplicable to the provisions of this endorsement are hereby made a part of this endorsement as fully and completely as if wholly written herein.

References to the law of any state in Conditions B and D of this policy are hereby declared to include, for the purpose of this endorsement only, the provisions of the Longshoremen's and Harbor Workers' Compensation Act.

(b) The following paragraphs may at the option of the insurer be included in

the form of endorsement which is provided above. No other provision, alteration of any prescribed provision, or alteration of any optional provision shall be made or used in any such endorsement except after submission to the Bureau and its specific approval thereof.

If this Employer is a contractor the subject of whose contract includes operations covered by this policy and he shall subcontract all or any part of such contract to one or more sub-contractors, the remuneration of all the direct employees of all such sub-contractors shall be included in the return of remuneration under the provisions of this policy upon which premium is computed. Such remuneration so reported shall be considered the remuneration of employees of this Employer and shall in all instances be governed by the same terms, conditions, requirements, and obligations of the policy as the remuneration of the direct employees of this Employer. The requirements of this paragraph shall not apply as respects any such sub-contractor who has secured compensation for his direct employees as required by the Longshoremen's and Harbor Workers' Compensation Act, but this Employer shall not claim the benefit of this exemption unless and until he shall satisfy the Company by certificate or otherwise that any such subcontractor has legally secured the payment of compensation to his own direct employees and then only respecting any sub-contractor who has furnished such proof.

If the premium as determined in accordance with the provisions of the policy is less than $300, there shall be added thereto an Expense Constant of $10, unless such addition shall increase the premium to an amount in excess of $300, in which event only such part of the Expense Constant shall be added as will bring the amount of the premium up to $300. Inclusion of the Expense Constant or any part thereof in the Estimated Advance Premium is subject to final adjustment upon audit, all in accordance with the provisions hereof. The Minimum Premium of the policy includes the Expense Constant. § 32.10

Other forms of endorsements and policies.

Where the form of endorsement prescribed by § 32.9 is not appropriate when used in conjunction with a form of policy approved for use by the Bureau, no modification thereof shall be used unless specifically approved by the Bureau. Where the form of policy is designed to include therein the obligations of the insurer under said act without the use of the Longshoremen's endorsement, the policy shall contain the provisions required to be included in the Longshoremen's endorsement, as stated in said section. The policy may include the op

No new forms of policies or modification of existing forms of policies shall be used by an insurer authorized by the Bureau under the regulations in this subchapter to write insurance under said act except after submission to and approval by the Bureau. No endorsement altering any provisions of a policy approved by the Bureau shall be used except after submission to and approval by the Bureau.

§ 32.12 Terms of policies.

A policy or contract of insurance shall be issued for the term of not less than 1 year from the date that it becomes effective, but if such insurance be not needed except for a particular contract or operation, the term of the policy may be limited to the period of such contract or operation.

§ 32.13 Marine insurance contracts.

A Longshoremen's policy, or the Longshoremen's endorsement provided for by § 32.9 for attachment to a marine policy, may specify the particular vessel or vessels in respect of which the policy applies and the address of the employer at the home port thereof. The card report of the issue of a policy or endorsement required by § 32.16 to be made by the carrier shall be made to the deputy commissioner for the compensation district in which the home port of such vessel or vessels is located, and such report shall show the name and address of the owner as well as the name or names of such vessel or vessels.

§ 32.14 Notice of cancelation.

Cancelation of a contract or policy of insurance issued under authority of said act shall not become effective otherwise than as provided by section 36(b) of said act (44 Stat. 1442; 33 U.S.C. 936(b)); and notice of a proposed cancelation shall be given to the deputy commissioner and to the employer in accordance with the provisions of subdivision (c) of section 12 of said act (44 Stat. 1431; 33 U. S. C. 912 (c)) 30 days before such cancelation is intended to be effective.