Oklahoma § 85-403 - Repealed by Laws 2013, c. 208, § 171, eff. Feb. 1, 2014

§ 85-403. Repealed by Laws 2013, c. 208, § 171, eff. Feb. 1, 2014

NOTE: Subsequent to repeal, this section was amended by Laws 2013,

c. 254, § 47 to read as follows:

A. There is hereby created, for the purposes declared in this act, the

"Multiple Injury Trust Fund" to be derived from the following sources:

1. As soon as practicable after January 1 of each year, the

Administrator of the Workers' Compensation Court shall establish an

assessment rate applicable to each mutual or interinsurance association,

stock company, or other insurance carrier writing workers' compensation

insurance in this state, each employer carrying its own risk, and each group

self-insurance association, for amounts for purposes of computing the

assessment authorized by this section necessary to pay the annual obligations

of the Multiple Injury Trust Fund determined on or before December 31 of each

year by the MITF Director to be outstanding for the next calendar year, and

to pay the allocations provided for in subsection I of this section. The

rate shall be equal for all parties required to pay the assessment. The

Board of Directors for CompSource Mutual Insurance Company shall have the

power to disapprove the rate established by the MITF Director until the

Multiple Injury Trust Fund repays in full the amount due on any loan from

CompSource Mutual Insurance Company or its predecessor CompSource Oklahoma.

Oklahoma Statutes - Title 85. Workers' Compensation

If the MITF Director and CompSource Mutual Insurance Company have not agreed

on the assessment rate within thirty (30) days, the Administrator of the

Workers' Compensation Court shall set an assessment rate sufficient to cover

all foreseeable obligations of the Multiple Injury Trust Fund, including

interest and principal owed by the Fund on any loan. The rate in effect on

the effective date of this act shall remain effective through June 30, 2012;

2. The Oklahoma Tax Commission shall assess and collect from any

uninsured employer a temporary assessment at the rate of five percent (5%) of

the total compensation for permanent total disability awards, permanent

partial impairment awards, and death benefits paid out during each quarter of

the calendar year by the employers;

3. The assessments shall be paid to the Tax Commission. Insurance

carriers, self-insurers and group self-insurance associations shall pay the

assessment in four equal installments not later than the fifteenth day of the

month following the close of each quarter of the calendar year of the

assessment. Assessments shall be determined based upon gross direct written

premiums, normal premiums or actual paid losses of the paying party, as

applicable, during the calendar quarter for which the assessment is due.

Uninsured employers shall pay the assessment not later than the fifteenth day

of the month following the close of each quarter of the calendar year of the

assessment. For purposes of this section, "uninsured employer" means an

employer required by law to carry workers' compensation insurance but who has

failed or neglected to do so. Only one-third (1/3) of assessments against

insurance carriers may be charged to policyholders and shall not be

considered in determining whether any rate is excessive. The remaining twothirds (2/3) of assessments against insurance carriers may not be included in

any rate, premium, charge, fee, assessment or other amount to be collected

from a policyholder. Insurance carriers shall not separately state the

amount of the assessment on any invoice or billing assessment.

a.

The assessment authorized in this section shall be determined

using a rate equal to the proportion that the sum of the

outstanding obligations of the Multiple Injury Trust Fund as

determined pursuant to paragraph 1 of this subsection and the

allocations provided for in subsection I of this section bear

to the combined gross direct written premiums of all such

insurers; all actual paid losses of all individual selfinsureds; and the normal premium of all group self-insurance

associations, for the year period from January 1 to December

31 preceding the assessment.

b.

For purposes of this subsection:

(1)

"actual paid losses" means all medical and indemnity

payments, including temporary disability, permanent

disability, and death benefits, and excluding loss

adjustment expenses and reserves, and

(2)

"normal premium" means a standard premium less any

discounts;

4. By April 15 of each year, the Insurance Commissioner, the MITF

Director, and each individual and group self-insured shall provide the

Administrator with such information as the Administrator may determine is

necessary to effectuate the purposes of this section;

5. Each mutual or interinsurance association, stock company, or other

insurance carrier writing workers' compensation insurance in this state, and

each employer carrying its own risk, including each group self-insurance

association, shall be notified by the Administrator in writing of the rate

for the assessment on or before May 1 of each year in which a rate is

determined. The rate determined by the Administrator shall be in effect for

Oklahoma Statutes - Title 85. Workers' Compensation

four calendar quarters beginning July 1 following determination by the

Administrator;

6. a.

No mutual or interinsurance association, stock company, or

other insurance carrier writing workers' compensation

insurance in this state, may be assessed in any year an amount

greater than six percent (6%) of the gross direct written

premiums of that insurer.

b.

No employer carrying its own risk may be assessed in any year

an amount greater than six percent (6%) of the total actual

paid losses of that individual self-insured.

c.

No group self-insurance association may be assessed in any

year an amount greater than six percent (6%) of the normal

premium of that group self-insurance association.

d.

If the maximum assessment does not provide in any one year an

amount sufficient to make all necessary payments for

obligations of the Multiple Injury Trust Fund and for the

allocations provided for in subsection I of this section, the

unpaid portion shall be paid as soon thereafter as funds

become available.

B. The Multiple Injury Trust Fund is hereby authorized to receive and

expend monies appropriated by the Legislature.

C. It shall be the duty of the Tax Commission to collect the payments

provided for in this act. The Tax Commission is hereby authorized to bring

an action for the recovery of any delinquent or unpaid payments required in

this section.

D. Any mutual or interinsurance association, stock company, or other

insurance company, which is subject to regulation by the Insurance

Commissioner, failing to make payments required in this act promptly and

correctly, and failing to report payment of the same to the Insurance

Commission within ten (10) days of payment shall be subject to administrative

penalties as allowed by law, including but not limited to a fine in the

amount of Five Hundred Dollars ($500.00) or an amount equal to one percent

(1%) of the unpaid amount, whichever is greater, to be paid to the Insurance

Commissioner.

E. Any employer carrying its own risk, or group self-insurance

association failing to make payments required in this act promptly and

correctly, and failing to report payment of the same to the Administrator

within ten (10) days of payment shall be subject to administrative penalties

as allowed by law, including but not limited to a fine in the amount of Five

Hundred Dollars ($500.00) or an amount equal to one percent (1%) of the

unpaid amount, whichever is greater, to be paid to the Administrator.

F. 1. On or before the first day of April of each year, the State

Treasurer shall advise the Administrator, the MITF Director and the Tax

Commission of the amount of money held as of March 1 of that year by the

State Treasurer to the credit of the Multiple Injury Trust Fund. On or

before the first day of November of each year, the State Treasurer shall

advise the Administrator, the Board of Managers of CompSource Oklahoma and

the Tax Commission of the amount of money held as of October 1 of that year

by the State Treasurer to the credit of the Multiple Injury Trust Fund.

2. Until such time as the Multiple Injury Trust Fund fully satisfies any

loan obligation payable to CompSource Mutual Insurance Company or its

predecessor CompSource Oklahoma, the State Treasurer shall:

a.

advise the Chief Executive Officer of CompSource Mutual

Insurance Company on or before the first day of April of the

money held as of March 1 of that year by the State Treasurer

to the credit of the Multiple Injury Trust Fund, and

Oklahoma Statutes - Title 85. Workers' Compensation

b.

advise the Chief Executive Officer of CompSource Mutual

Insurance Company on or before the first day of November of

the money held as of October 1 of that year by the State

Treasurer to the credit of the Multiple Injury Trust Fund.

G. Eighty percent (80%) of all sums held by the State Treasurer to the

credit of the Multiple Injury Trust Fund may by order of the MITF Director,

with the approval of the Insurance Commissioner, be invested in or loaned on

the pledge of any of the securities in which a state bank may invest the

monies deposited therein by the State Treasurer; or may be deposited in state

or national banks or trust companies upon insured time deposit bearing

interest at a rate no less than currently being paid upon insured savings

accounts in the institutions. As used in this section, "insured" means

insurance as provided by an agency of the federal government. All such

securities or evidence of indebtedness shall be placed in the hands of the

State Treasurer, who shall be the custodian thereof, who shall collect the

principal and interest when due, and pay the same into the Multiple Injury

Trust Fund. The State Treasurer shall pay by vouchers drawn on the Multiple

Injury Trust Fund for the making of such investments, when signed by the MITF

Director, upon delivery of such securities or evidence of indebtedness to the

State Treasurer. The MITF Director may sell any of such securities, the

proceeds thereof to be paid over to the State Treasurer for the Multiple

Injury Trust Fund.

H. The refund provisions of Sections 227 through 229 of Title 68 of the

Oklahoma Statutes shall be applicable to any payments made to the Multiple

Injury Trust Fund. Refunds shall be paid from and out of the Multiple Injury

Trust Fund.

I. The Tax Commission shall pay, monthly, to the State Treasurer to the

credit of the Multiple Injury Trust Fund all monies collected pursuant to the

provisions of this section, less the annual sum of Two Million Five Hundred

Fifty Thousand Dollars ($2,550,000.00), of which One Million Two Hundred

Seventy-five Thousand Dollars ($1,275,000.00) shall be payable by the

Oklahoma Tax Commission to the State Treasurer in equal monthly installments

to the credit of the Department of Labor, Six Hundred Thirty-seven Thousand

Five Hundred Dollars ($637,500.00) shall be payable in equal monthly

installments to the credit of the Office of the Attorney General, and Six

Hundred Thirty-seven Thousand Five Hundred Dollars ($637,500.00) shall be

payable in equal monthly installments to the credit of the Oklahoma

Department of Career and Technology Education. Monies received by the

Department of Labor under this section shall be used for safety consultation

and the regulation of the safety of public employees through the Occupational

Safety and Health Act of 1970. Monies received by the Office of the Attorney

General shall be deposited to the credit of the Attorney General's Workers'

Compensation Fraud Unit Revolving Fund created pursuant to Section 19.2 of

Title 74 of the Oklahoma Statutes. Monies received by the Oklahoma

Department of Career and Technology Education shall supplement other funding

to the Department for purposes of implementing the provisions of subsection B

of Section 414 of Title 40 of the Oklahoma Statutes. The State Treasurer

shall pay out of the Multiple Injury Trust Fund only upon the order and

direction of the Workers' Compensation Court acting under the provisions

hereof.

J. The Administrator shall promulgate rules as the Administrator deems

necessary to effectuate the provisions of this section.

K. The Insurance Commissioner shall promulgate rules relating to

insurers as defined in Title 36 of the Oklahoma Statutes, as the Insurance

Commissioner deems necessary to effectuate the provisions of this section.

L. The Multiple Injury Trust Fund may enter into an agreement with any

reinsurer licensed to sell reinsurance by the Insurance Commissioner pursuant

Oklahoma Statutes - Title 85. Workers' Compensation

to a competitive process administered by the Director of Central Purchasing

in the Office of Management and Enterprise Services.

M. Any dividend, rebate, or other distribution, payable by any workers'

compensation insurance carrier, to a state agency policyholder shall be paid

to the State Treasurer, and shall be credited as follows:

1. In the event of failure of the Multiple Injury Trust Fund to meet all

lawful obligations, the monies shall be credited to the Multiple Injury Trust

Fund and shall be used by the Multiple Injury Trust Fund to meet all lawful

obligations of the Multiple Injury Trust Fund; and

2. Otherwise, all future dividends made by any workers' compensation

insurance carrier, on behalf of state agencies, shall be deposited to the

credit of the General Revenue Fund of the State Treasury.