(a) Every employer shall secure the payment of compensation under this chapter and Chapter 32.06:
(1) by insuring and keeping insured the payment of such compensation with any stock company or mutual company or association or with any person or fund authorized by the Commission to transact the business of workmen’s compensation insurance in the territory; or
(2) by furnishing satisfactory proof to the Commissioner of his financial ability to pay such compensation and receiving an authorization from the commissioner to pay such compensation directly. The Commissioner may, as a condition to such authorization, require such employer to deposit, in a depository designated by the Commissioner, either an indemnity bond or securities at the option of the employer, of a kind and in an amount determined by the Commissioner, and subject to such conditions as the Commissioner may prescribe, which shall include authorization to the Commissioner 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 or compensation under this chapter and Chapter 32.06. Any employer securing compensation in accordance with the provisions of this paragraph shall be known as a self-insurer.
(b) Notwithstanding subsection (a) the government may make compensation payments under the provisions of this chapter and Chapter 32.06 from the special fund referred to in 32.0515.History: 1967, PL 10-15.