On Monday, the Oklahoma Senate approved a bill that would require the state insurance administrator to develop and administer an assigned employee compensation risk plan.
S.B. 524, which was approved in a 43-2 vote, would require the State Insurance Commissioner to develop and administer an assigned risk plan to compensate workers to employers who cannot receive coverage in the voluntary market in which all private insurers must participate as a condition of their ability to do business in Oklahoma.
The bill would allow the Commissioner to appoint a third party, including a private insurance company, to administer the plan for a period of three years.
The legislation also states Oklahoma City-based workers comp insurer CompSource Mutual Insurance Co. which serves as a "residual market mechanism" for insurance companies that would otherwise be in the assigned risk plan until the plan is completed, but no later than January 1
Previously, state law on compensation for employees joint guarantee, joint reinsurance pool and ongoing marketing activities specifically uded transactions involving CompSource.
The bill has been sent to the house for consideration. If the legislation is signed, it will enter into force on 1 November 2021.