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 Secretary 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 Secretary 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 of compensation
under this chapter. Any employer securing compensation
in accordance with the provisions of this paragraph shall be known as a self-insurer.