33 U.S.C. § 933 — Compensation for injuries where third per-

Page 307 TITLE 33—NAVIGATION AND NAVIGABLE WATERS § 933 (1) By insuring and keeping insured the pay- ment 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 Sec- retary, 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 Sec- retary 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 Sec- retary in case of default to sell any such secu- rities 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 para- graph 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 consider- ation the recommendation of any State author- ity having supervision over carriers or over workmen’s compensation, and may authorize any carrier to insure the payment of compensa- tion 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 re- spect of the ownership, operation, or chartering of vessels on a mutual assessment plan, shall be deemed a qualified carrier to insure compensa- tion under this chapter. The Secretary may sus- pend 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, § 32, 44 Stat. 1439; Pub. L. 98–426, §§ 20, 27(a)(2), Sept. 28, 1984, 98 Stat. 1652, 1654.) Editorial Notes AMENDMENTS 1984—Subsec. (a)(1). Pub. L. 98–426, § 27(a)(2), sub- stituted ‘‘Secretary’’ for ‘‘commission’’. See Transfer of Functions note set out under section 902 of this title. Subsec. (a)(2). Pub. L. 98–426, § 20, inserted ‘‘based on the employer’s financial condition, the employer’s pre- vious record of payments, and other relevant factors,’’ after ‘‘in an amount determined by the commission,’’. Pub. L. 98–426, § 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, § 27(a)(2), substituted ‘‘Sec- retary’’ for ‘‘commission’’. See Transfer of Functions note set out under section 902 of this title. Statutory Notes and Related Subsidiaries 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. § 933. Compensation for injuries where third per- sons are liable (a) Election of remedies If on account of a disability or death for which compensation is payable under this chapter the person entitled to such compensation deter- mines that some person other than the employer or a person or persons in his employ is liable in damages, he need not elect whether to receive such compensation or to recover damages against such third person. (b) Acceptance of compensation operating as as- signment Acceptance of compensation under an award in a compensation order filed by the deputy commissioner, an administrative law judge, or the Board shall operate as an assignment to the employer of all rights of the person entitled to compensation to recover damages against such third person unless such person shall commence an action against such third person within six months after such acceptance. If the employer fails to commence an action against such third person within ninety days after the cause of ac- tion is assigned under this section, the right to bring such action shall revert to the person enti- tled to compensation. For the purpose of this subsection, the term ‘‘award’’ with respect to a compensation order means a formal order issued by the deputy commissioner, an administrative law judge, or Board. (c) Payment into section 944 fund operating as assignment The payment of such compensation into the fund established in section 944 of this title shall operate as an assignment to the employer of all right of the legal representative of the deceased (hereinafter referred to as ‘‘representative’’) to recover damages against such third person. (d) Institution of proceedings or compromise by assignee Such employer on account of such assignment may either institute proceedings for the recov- ery of such damages or may compromise with such third person either without or after insti- tuting such proceeding. (e) Recoveries by assignee Any amount recovered by such employer on account of such assignment, whether or not as the result of a compromise, shall be distributed as follows: (1) The employer shall retain an amount equal to— (A) the expenses incurred by him in re- spect to such proceedings or compromise (in- cluding a reasonable attorney’s fee as deter- mined by the deputy commissioner or Board); Page 308 TITLE 33—NAVIGATION AND NAVIGABLE WATERS § 933 (B) the cost of all benefits actually fur- nished by him to the employee under section 907 of this title; (C) all amounts paid as compensation; (D) the present value of all amounts there- after payable as compensation, such present value to be computed in accordance with a schedule prepared by the Secretary, and the present value of the cost of all benefits thereafter to be furnished under section 907 of this title, to be estimated by the deputy commissioner, and the amounts so computed and estimated to be retained by the em- ployer as a trust fund to pay such compensa- tion and the cost of such benefits as they be- come due, and to pay any sum finally re- maining in excess thereof to the person enti- tled to compensation or to the representa- tive; and (2) The employer shall pay any excess to the person entitled to compensation or to the rep- resentative. (f) Institution of proceedings by person entitled to compensation If the person entitled to compensation insti- tutes proceedings within the period prescribed in subsection (b) the employer shall be required to pay as compensation under this chapter a sum equal to the excess of the amount which the Secretary determines is payable on account of such injury or death over the net amount recov- ered against such third person. Such net amount shall be equal to the actual amount recovered less the expenses reasonably incurred by such person in respect to such proceedings (including reasonable attorneys’ fees). (g) Compromise obtained by person entitled to compensation (1) If the person entitled to compensation (or the person’s representative) enters into a settle- ment with a third person referred to in sub- section (a) for an amount less than the com- pensation to which the person (or the person’s representative) would be entitled under this chapter, the employer shall be liable for com- pensation as determined under subsection (f) only if written approval of the settlement is ob- tained from the employer and the employer’s carrier, before the settlement is executed, and by the person entitled to compensation (or the person’s representative). The approval shall be made on a form provided by the Secretary and shall be filed in the office of the deputy commis- sioner within thirty days after the settlement is entered into. (2) If no written approval of the settlement is obtained and filed as required by paragraph (1), or if the employee fails to notify the employer of any settlement obtained from or judgment rendered against a third person, all rights to compensation and medical benefits under this chapter shall be terminated, regardless of whether the employer or the employer’s insurer has made payments or acknowledged entitle- ment to benefits under this chapter. (3) Any payments by the special fund estab- lished under section 944 of this title shall be a lien upon the proceeds of any settlement ob- tained from or judgment rendered against a third person referred to under subsection (a). Notwithstanding any other provision of law, such lien shall be enforceable against such pro- ceeds, regardless of whether the Secretary on behalf of the special fund has agreed to or has received actual notice of the settlement or judg- ment. (4) Any payments by a trust fund described in section 917 of this title shall be a lien upon the proceeds of any settlement obtained from or judgment recorded against a third person re- ferred to under subsection (a). Such lien shall have priority over a lien under paragraph (3) of this subsection. (h) Subrogation Where the employer is insured and the insur- ance carrier has assumed the payment of the compensation, the insurance carrier shall be subrogated to all the rights of the employer under this section. (i) Right to compensation as exclusive remedy The right to compensation or benefits under this chapter shall be the exclusive remedy to an employee when he is injured, or to his eligible survivors or legal representatives if he is killed, by the negligence or wrong of any other person or persons in the same employ: Provided, That this provision shall not affect the liability of a person other than an officer or employee of the employer. (Mar. 4, 1927, ch. 509, § 33, 44 Stat. 1440; June 25, 1938, ch. 685, §§ 12, 13, 52 Stat. 1168; Pub. L. 86–171, Aug. 18, 1959, 73 Stat. 391; Pub. L. 92–576, § 15(f)–(h), Oct. 27, 1972, 86 Stat. 1262; Pub. L. 98–426, § 21, Sept. 28, 1984, 98 Stat. 1652.) Editorial Notes AMENDMENTS 1984—Subsec. (b). Pub. L. 98–426, § 21(a), substituted ‘‘Acceptance of compensation under an award in a com- pensation order filed by the deputy commissioner, an administrative law judge, or the Board shall operate as an assignment to the employer of all rights of the per- son entitled to compensation to recover damages against such third person unless such person shall com- mence an action against such third person within six months after such acceptance’’ for ‘‘Acceptance of such compensation under an award in a compensation order filed by the deputy commissioner or Board shall oper- ate as an assignment to the employer of all right of the person entitled to compensation to recover damages against such third person unless such person shall com- mence an action against such third person within six months after such award’’ and inserted at end ‘‘If the employer fails to commence an action against such third person within ninety days after the cause of ac- tion is assigned under this section, the right to bring such action shall revert to the person entitled to com- pensation. For the purpose of this subsection, the term ‘award’ with respect to a compensation order means a formal order issued by the deputy commissioner, an ad- ministrative law judge, or Board.’’ Subsec. (e)(2). Pub. L. 98–426, § 21(b), struck out ‘‘, less one-fifth of such excess which shall belong to the em- ployer’’ after ‘‘or to the representative’’. Subsec. (f). Pub. L. 98–426, § 21(c)(1), inserted ‘‘net’’ be- fore ‘‘amount recovered’’. Pub. L. 98–426, § 21(c)(2), inserted at end ‘‘Such net amount shall be equal to the actual amount recovered less the expenses reasonably incurred by such person in respect to such proceedings (including reasonable at- torneys’ fees).’’ Page 309 TITLE 33—NAVIGATION AND NAVIGABLE WATERS § 935 Subsec. (g). Pub. L. 98–426, § 21(d), designated existing provisions as par. (1), substituted ‘‘If the person enti- tled to compensation (or the person’s representative) enters into a settlement with a third person referred to in subsection (a) for an amount less than the compensa- tion to which the person (or the person’s representa- tive) would be entitled under this chapter, the em- ployer shall be liable for compensation as determined under subsection (f) only if written approval of the set- tlement is obtained from the employer and the employ- er’s carrier, before the settlement is executed, and by the person entitled to compensation (or the person’s representative)’’ for ‘‘If compromise with such third person is made by the person entitled to compensation or such representative of an amount less than the com- pensation to which such person or representative would be entitled to under this chapter the employer shall be liable for compensation as determined in subsection (f) only if the written approval of such compromise is ob- tained from the employer and its insurance carrier by the person entitled to compensation or such represent- ative at the time of or prior to such compromise on a form provided by the Secretary and filed in the office of the deputy commissioner having jurisdiction of such injury or death within thirty days after such com- promise is made’’, inserted at end ‘‘The approval shall be made on a form provided by the Secretary and shall be filed in the office of the deputy commissioner within thirty days after the settlement is entered into.’’, and added pars. (2) to (4). 1972—Subsecs. (b), (e)(1)(A). Pub. L. 92–576, § 15(f), (g), inserted ‘‘or Board’’ after ‘‘deputy commissioner’’. Subsec. (g). Pub. L. 92–576, § 15(h), substituted ‘‘if the written approval of such compromise is obtained from the employer and its insurance carrier by the person entitled to compensation or such representative at the time of or prior to such compromise on a form provided by the Secretary and filed in the office of the deputy commissioner having jurisdiction of such injury or death within thirty days after such compromise is made’’ for ‘‘if such compromise is made with his writ- ten approval’’. 1959—Subsec. (a). Pub. L. 86–171 inserted ‘‘or a person or persons in his employ’’ after ‘‘employer’’ and sub- stituted ‘‘he need not elect whether’’ for ‘‘he may elect, by giving notice to the deputy commissioner in such manner as the Secretary may provide,’’. Subsec. (b). Pub. L. 86–171 inserted ‘‘unless such per- son shall commence an action against such third per- son within six months after such award’’. Subsec. (c). Pub. L. 86–171 struck out ‘‘, whether or not the representative has notified the deputy commis- sioner of his election’’ after ‘‘third person’’. Subsec. (d). Pub. L. 86–171 reenacted subsec. (d) with- out change. Subsec. (e). Pub. L. 86–171 substituted ‘‘Secretary’’ for ‘‘Commission’’ in par. (1)(D) and inserted in par. (2) ‘‘less one-fifth of such excess which shall belong to the employer’’. Subsec. (f). Pub. L. 86–171 struck out ‘‘or the rep- resentative elects to recover damages against such third person and notifies the Secretary of his election and’’ before ‘‘institutes’’ and substituted ‘‘subsection (b)’’ for ‘‘section 913 of this title’’ and ‘‘Secretary’’ for ‘‘Commission’’. Subsec. (g). Pub. L. 86–171 corrected reference to ‘‘subsection (e)’’ to read ‘‘subsection (f)’’. Subsecs. (h), (i). Pub. L. 86–171 redesignated subsec. (i) as (h) and struck out former subsec. (h) that permitted the deputy commissioner to make an election for a minor or to authorize the parent or guardian to make the election. 1938—Subsec. (b). Act June 25, 1938, § 12, inserted ‘‘under an award in a compensation order filed by the deputy commissioner’’ and struck out ‘‘, whether or not the person entitled to compensation has notified the deputy commissioner of his election’’ at end of sen- tence. Subsec. (e). Act June 25, 1938, § 12, redesignated par. (1)(C) as par. (1)(C) and (D) and included in said par. (1)(D) the present value of the cost of benefits fur- nished. Subsec. (i). Act June 25, 1938, § 13, added subsec. (i). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–426 effective Sept. 28, 1984, and applicable both with respect to claims filed after such date and to claims pending on such date, see sec- tion 28(a) of Pub. L. 98–426, set out as a note under sec- tion 901 of this title. EFFECTIVE DATE OF 1972 AMENDMENT Amendment by Pub. L. 92–576 effective 30 days after Oct. 27, 1972, see section 22 of Pub. L. 92–576, set out as a note under section 902 of this title. § 934. Compensation notice Every employer who has secured compensa- tion under the provisions of this chapter shall keep posted in a conspicuous place or places in and about his place or places of business type- written or printed notices, in accordance with a form prescribed by the Secretary, stating that such employer has secured the payment of com- pensation in accordance with the provisions of this chapter. Such notices shall contain the name and address of the carrier, if any, with whom the employer has secured payment of compensation and the date of the expiration of the policy. (Mar. 4, 1927, ch. 509, § 34, 44 Stat. 1441; Pub. L. 98–426, § 27(a)(2), Sept. 28, 1984, 98 Stat. 1654.) Editorial Notes AMENDMENTS 1984—Pub. L. 98–426 substituted ‘‘Secretary’’ for ‘‘commission’’. See Transfer of Functions note set out under section 902 of this title. Statutory Notes and Related Subsidiaries 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. § 935. Substitution of carrier for employer In any case where the employer is not a self- insurer, in order that the liability for compensa- tion imposed by this chapter may be most effec- tively discharged by the employer, and in order that the administration of this chapter in re- spect of such liability may be facilitated, the Secretary shall by regulation provide for the discharge, by the carrier for such employer, of such obligations and duties of the employer in respect to such liability, imposed by this chap- ter upon the employer, as it considers proper in order to effectuate the provisions of this chap- ter. For such purposes (1) notice to or knowledge of an employer of the occurrence of the injury shall be notice to or knowledge of the carrier, (2) jurisdiction of the employer by a deputy com- missioner, the Board, or the Secretary, or any court under this chapter shall be jurisdiction of the carrier, and (3) any requirement by a deputy commissioner, the Board, or the Secretary, or any court under any compensation order, find- ing, or decision shall be binding upon the carrier