§933 Duties of Operators in States Not Qualifying Under Workmen’s Compensation Laws

Summary

When a State’s workers’ compensation law is not on the Secretary’s list, each coal mine operator in that State must make sure the benefits named in section 932 are paid. The operator can either become a self-insurer under the Secretary’s rules or buy and keep insurance from an authorized company or fund. Any insurance must promise to pay the section 932 benefits even if the State law would pay less, must still pay if the operator goes bankrupt or becomes insolvent, and must include any other terms the Secretary requires. An insurer may not cancel a policy before it expires until at least thirty days after sending notice by registered or certified mail to the Secretary and to the operator. If an employer fails to secure these payments, the Secretary can charge a civil penalty of up to $1,000 for each day the failure continues. If the employer is a corporation, the president, secretary, and treasurer can each be held personally responsible for those penalties and, together with the corporation, for any benefits due for a disability that happens while the employer failed to secure payment. If an employer knowingly hides, sells, or destroys property after a miner files a claim to avoid paying benefits, that person is guilty of a misdemeanor and can be fined up to $1,000, jailed for up to one year, or both. For a corporation, those officers can also be held liable as described. These rules do not remove any other legal duties the employer may have.