(1) A security deposit must be deposited with the department by the applicant on order of the department, with the concurrence of the guaranty fund.

(2) The security deposit requirement may be waived in whole or in part by the department, with the concurrence of the guaranty fund, for applicants who provide substantive evidence that the statutory amount of the security deposit is not needed. This evidence must reflect the applicant's ability to pay the benefits provided for in the Workers' Compensation Act, and the Occupational Disease Act for occupational diseases that occurred before July 1, 2005.

(3) A self-insurer that does not have sufficient securities on deposit with the department, with which to pay benefits, shall be required to furnish additional security.