Oklahoma bill would create assigned risk comp planPosted On: Mar. 10, 2021 2:12 PM CST
The Oklahoma Senate on Monday passed a bill that would require the state’s insurance administrator to develop and administer an assigned risk plan for workers compensation.
S.B. 524, which passed in a 43-2 vote, would require the state’s insurance commissioner to develop and administer an assigned risk plan to provide workers comp to employers unable to obtain coverage in the voluntary market that all private insurers must participate in as a condition of their ability to transact business in Oklahoma.
The bill would allow the commissioner to designate a third party, including a private insurer, to administer the plan for a three-year period.
The legislation also names Oklahoma City-based workers comp insurer CompSource Mutual Insurance Co. as serving as the “residual market mechanism” for insurers who would otherwise be in the assigned risk plan until the plan is complete, but no later than Jan. 1, 2023. The state fund CompSource Oklahoma transitioned to private CompSource Mutual in 2014.
Previously, state law relating to workers compensation joint underwriting, joint reinsurance pool and residual market activities specifically excluded transactions involving CompSource.
The bill has been sent to the House for consideration. If signed into law, the legislation would take effect Nov. 1, 2021.