Oklahoma § 36-608.2 - Assigned risk plan for employers unable to procure

§ 36-608.2. Assigned risk plan for employers unable to procure

coverage in the voluntary market.

A. The Insurance Commissioner shall develop and administer an

assigned risk plan to provide workers' compensation insurance

coverage to employers who are unable to procure coverage in the

voluntary market. In addition to the requirements of subsection B

Oklahoma Statutes - Title 36. Insurance

of this section, the plan shall include but not be limited to

qualifications for and termination of coverage.

B. To qualify for coverage under the plan, an employer shall

have been declined coverage by at least two unaffiliated insurers

and shall provide documentation to the Commissioner that the

unaffiliated insurers are unwilling to provide coverage at any

premium level that is reasonably related to the risk presented by

the employer.

C. Any employer satisfying the requirements of subsection B of

this section, and any other qualifications established by the

Commissioner, shall be provided coverage at a premium level to be

determined or approved by the Insurance Commissioner. Premiums

shall be actuarially sound, consistent with industry standards for

classification and rate-making methodologies and calculated to

enable the plan to be self-sustaining and able to operate without

subsidies from employers and insurers in the voluntary market, to

the extent possible. Rates shall not be excessive, inadequate or

unfairly discriminatory, pursuant to Section 902 of Title 36 of the

Oklahoma Statutes.

D. The Insurance Commissioner may designate a third party

including a private carrier or rating organization with substantial

experience in developing and administering similar programs in other

states, to develop and administer the assigned risk plan for a

three-year period beginning on the effective date of this act.

Following this period, the Commissioner shall contract with the same

or another qualified third party to continue the administration of

the assigned risk plan; provided, however, that the Commissioner

shall approve the plan prior to the plan becoming operative. The

plan established pursuant to this section shall require that all

private carriers participate as a condition of their authority to

transact business in this state.

E. Prior to the operation of the plan established pursuant to

the provisions of this section, but in no event later than June 1,

2024, CompSource Mutual Insurance Company, a private, domestic

mutual insurance company incorporated in this state and regulated by

the Insurance Department, successor-in-interest to CompSource

Oklahoma, shall serve as the residual market mechanism for those

insureds who would otherwise be in the assigned risk plan.

Added by Laws 2022, c. 304, § 2, eff. Nov. 1, 2022.