(1) As a condition precedent to the issuance of a license to self insure, the employer shall either deposit securities or furnish a surety bond with the state treasurer in an amount determined by the Department, together with satisfactory evidence that the reinsurance required by the Department under MGL c. 152, § 25A(2)(c), is in effect. Such deposit of securities or surety bond shall be in an amount equal to the applicant's liabilities both incurred and to be incurred, as shall be determined by the Office of Insurance, provided that the minimum deposit or bond shall be $100,000.00.

(2) The deposit required by MGL c. 152, § 25A(2)(a), or the securities to be deposited with the state treasurer after demand made by the Department in conformity with the provisions of a surety bond furnished by a self insurer as provided in MGL c. 152, § 25 (2)(b) shall be in the form of cash or such bonds, notes or other negotiable obligations which may be legal investments for savings banks on this Commonwealth as determined from time to time by the commissioner of banks of this commonwealth. Registered securities shall be registered as follows: "Treasurer and Receiver General of the Commonwealth of Massachusetts in trust for the benefit and security of the employees of the self insurer." Any securities deposited shall be accompanied by an agreement in the form approved by the Department and deposited with the securities in the Office of the State Treasurer.