§ 50. Security for payment of compensation. An employer shall secure\ncompensation to his employees in one or more of the following ways:\n 1. By insuring and keeping insured the payment of such compensation in\nthe state fund, or\n 2. By insuring and keeping insured the payment of such compensation\nwith any stock corporation, mutual corporation or reciprocal insurer\nauthorized to transact the business of workers' compensation insurance\nin this state through a policy issued under the law of this state.\n 3. By furnishing satisfactory proof to the chair of his financial\nability to pay such compensation for himself, or to pay such\ncompensation on behalf of a group of employers in accordance with\nsubdivision ten of this section, in which case the chair shall require\nthe deposit with the chair of such securities as the chair may deem\nnecessary of the kind prescribed in subdivisions one, two, three, four\nand five, and subparagraph (a) of paragraph three of subdivision seven\nof section two hundred thirty-five of the banking law, or the deposit of\ncash, or the filing of irrevocable letters of credit issued by a\nqualified banking institution as defined by rules promulgated by the\nchair or the filing of a bond of a surety company authorized to transact\nbusiness in this state, in an amount to be determined by the chair, or\nthe posting and filing as aforesaid of a combination of such securities,\ncash, irrevocable letters of credit and surety bond in an amount to be\ndetermined by the chair, to secure his liability to pay the compensation\nprovided in this chapter. Any such surety bond must be approved as to\nform by the chair. If an employer or group of employers posts and files\na combination of securities, cash, irrevocable letters of credit and\nsurety bond as aforesaid, and if it becomes necessary to use the same to\npay the compensation provided in this chapter, the chair shall first use\nsuch securities or cash or irrevocable letters of credit and, when the\nfull amount thereof has been exhausted, he shall then require the surety\nto pay forthwith to the chair all or any part of the penal sum of the\nbond for that purpose. The chair may also require an agreement on the\npart of the employer or group of employers to pay any awards commuted\nunder section twenty-seven of this chapter, into the special fund of the\nstate fund, as a condition of his being allowed to remain uninsured\npursuant to this section. The chair shall have the authority to deny the\napplication of an employer or group of employers to pay such\ncompensation for himself or to revoke his consent furnished, under this\nsection at any time, for good cause shown. The employer or group of\nemployers qualifying under this subdivision shall be known as a\nself-insurer.\n If for any reason the status of an employer or group of employers\nunder this subdivision is terminated, the securities or the surety bond,\nor the securities, cash, or irrevocable letters of credit and surety\nbond, on deposit referred to herein shall remain in the custody of the\nchair for such time as the chair may deem proper and warranted under the\ncircumstances. In lieu thereof, and at the discretion of the chair, the\nemployer, his or her heirs or assigns or others carrying on or\nliquidating such business, may execute an assumption of workers'\ncompensation liability insurance policy as described herein. Separately,\nthe chair may execute an assumption of workers' compensation liability\ninsurance policy as described herein on behalf of the special funds\ncreated under the provisions of subdivisions eight and nine of section\nfifteen and section twenty-five-a of this chapter, and notwithstanding\nany provision to the contrary the chair may execute an assumption of\nworkers' compensation liability insurance policy on behalf of the\nuninsured employers' fund. An assumption of workers' compensation\nliability policy referred to herein shall secure such further and future\ncontin
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