(a) The chairman shall give to the carrier, and if the carrier is not the employer or association of employers or association of employees by whom the application for acceptance was filed, then also to the applicant, written notice that the plan is accepted as satisfying the obligation of the employer or employers to provide for the payment of benefits, or that it is not accepted. From and after the effective date of notice of acceptance, the provision for benefits and employee contributions under such plan shall be effective for the employees, or the class or classes of employees, entitled to benefits under the plan, in lieu of the provision for benefits under section 204 of the Workers' Compensation Law and for employee contributions under section 209.

(b) In the event a self-insured employer, association of employers, or association of employees subject to an accepted plan fail to pay benefits after being found liable under section 221 of the Workers’ Compensation Law, the board shall draw on the security deposit required by section 361.3 of this Title to pay benefits at the rate provided for in section 204 of the Workers’ Compensation Law.