(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 compensation benefits provided for in Title 39, chapter 71, of the Montana Code Annotated.

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