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4		-	An Act
5		-	ENROLLED SENATE
6		-	BILL NO. 524 By: Quinn of the Senate
	28	+	STATE OF OKLAHOMA
	29	+
	30	+	2nd Session of the 58th Legislature (2022)
	31	+
	32	+	CONFERENCE COMMITTEE SUBSTITUTE
	33	+	FOR ENGROSSED
	34	+	SENATE BILL 524 By: Quinn of the Senate
7	35
8	36		and
9	37
10	38		Sneed of the House
11	39
12	40
13	41
	42	+	CONFERENCE COMMITTEE S UBSTITUTE
14	43
15	44		An Act relating to workers' compensation insurance;
16	45		amending 36 O.S. 2021, Section 995, which relates to
17	46		joint underwriting and reinsurance; removing
18	47		exception of application of act to CompSource Mutual
19	48		Insurance Company; directing the Insurance
20	49		Commissioner to develop and administer an assigned
21	50		risk plan providing workers' compensation insurance
22	51		to certain employers; requiring plan include
23	52		qualification and termination terms ; requiring that
24	53		certain employers receive coverage under plan;
25	54		authorizing Commissioner to designate third party to
26	55		develop and administer plan for certain time period;
27	56		requiring Commissioner to contract with certain
28	57		person to continue plan; requiring Commissioner to
29	58		approve plan before implementation ; requiring all
30	59		private carriers to participate in plan; authorizing
31	60		CompSource to provide coverage to certain persons for
32	61		certain time period; repealing 85 O.S. 2021, Sections
33	62		375.1, 375.2, 375.3, 375.4, 375.5, 375.6, 375.7,
34	63		375.8, 375.9, 375.10, 375.11, 375.12, 375.13, and
35	64		396, which relate to the CompSource Mutual I nsurance
36	65		Company Act and CompSource information not open to
37	66		public inspection; providing for codification; and
38	67		providing an effective date.
39	68
40	69
41	70
42		-	SUBJECT: Workers' compensation insurance
43	71
44	72		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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46	99		SECTION 1. AMENDATORY 36 O.S. 2021, Section 995, is
47		-	amended to read as follows: Page 2
48		-	ENR. S. B. NO. 524
49		-
	100	+	amended to read as follows:
50	101		Section 995. Joint Underwriting, Joint Reinsurance Pool and
51	102		Residual Market Activities.
52		-
53	103		A. This section shall not apply to transactions involving
54	104		CompSource Mutual Insuran ce Company.
55		-
56	105		B. Notwithstanding paragraph 3 of subsection A of Section 992
57	106		of this title, insurers participating in joint underwriting, joint
58	107		reinsurance pools or residual market mechanisms may in connection
59	108		with such activity act in cooperation with each other in the making
60	109		of rates, rating systems, policy forms, underwriting rules, surveys,
61	110		inspections and investigations, the furnishing of loss and expense
62	111		statistics or other information, or carrying on research. Joint
63	112		underwriting, joint reinsurance poo ls and residual market mechanisms
64	113		shall not be deemed an advisory organization.
65		-
66	114		C. B. Except to the extent modified by this section, joint
67	115		underwriting, joint reinsurance pool and residual market mechanism
68	116		activities are subject to the other provisions of the Property and
69	117		Casualty Competitive Loss Cost Rating Act.
70		-
71	118		D. C. If, after a hearing, the Commissioner finds that any
72	119		activity or practice of an insurer participating in joint
73	120		underwriting or a pool is unfair, is unreasonable, will tend to
74	121		lessen competition in any market or is otherwise inconsistent with
75	122		the provisions or purposes of the Property and Casualty Competitive
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76	149		Loss Cost Rating Act, the Commissioner may issue a written order and
77	150		require the discontinuance of such activity or practice.
78		-
79	151		E. D. Every pool shall file wi th the Commissioner a copy of its
80	152		constitution, articles of incorporation, agreement or association,
81	153		bylaws, rules and regulations governing its activities, list of
82	154		members, the name and address of a resident of this state upon whom
83	155		notice, orders of the C ommissioner, or process may be served, and
84	156		any changes in amendments or changes in the foregoing.
85		-
86	157		F. E. Any residual market mechanism, plan or agreement to
87	158		implement such a mechanism, and any changes or amendments thereto,
88	159		shall be submitted in writing to the Commissioner for consideration
89	160		and approval, together with such information as may be reasonably
90	161		required.
91		-
92	162		SECTION 2. NEW LAW A new section of law to be codified
93	163		in the Oklahoma Statutes as Section 608.2 of Title 36, unl ess there
94	164		is created a duplication in numbering, reads as follows:
95		-	Page 3
96		-	ENR. S. B. NO. 524
97	165		A. The Insurance Commissioner shall develop and administer an
98	166		assigned risk plan to provide workers ' compensation insurance
99	167		coverage to employers who are unable to procure coverage in the
100	168		voluntary market. In addition to the requirements of subsection B
101	169		of this section, the plan shall include but not be limited to
102	170		qualifications for and termination of coverage.
103		-
104	171		B. To qualify for coverage under the plan, an employer shall
105	172		have been declined coverage by at least two unaffiliated insurers
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106	199		and shall provide documentation to the Commissioner that the
107	200		unaffiliated insurers are unwilling to provide coverage at any
108	201		premium level that is reasonably related to the risk presented by
109	202		the employer.
110		-
111	203		C. Any employer satisfying the requirements of subsection B of
112	204		this section, and any other qualifications established by the
113	205		Commissioner, shall be provided coverage at a premium level to be
114	206		determined or approved by the Insurance Commissioner. Premiums
115	207		shall be actuarially sound, consistent with industry standards for
116	208		classification and rate -making methodologies and calculated to
117	209		enable the plan to be self -sustaining and able to operate without
118	210		subsidies from employers and insurers in the voluntary marke t, to
119	211		the extent possible. Rates shall not be excessive, inadequate or
120	212		unfairly discriminatory, pursuant to Section 902 of Title 36 of the
121	213		Oklahoma Statutes.
122		-
123	214		D. The Insurance Commissioner may designate a third party
124	215		including a private carrier or rating organization with substantial
125	216		experience in developing and administering similar programs in other
126	217		states, to develop and administer the assigned risk plan for a
127	218		three-year period beginning on the effective date of this act.
128	219		Following this period, the Com missioner shall contract with the same
129	220		or another qualified third party to continue the administration of
130	221		the assigned risk plan ; provided, however, that the Commissioner
131	222		shall approve the plan prior to the plan becoming operative. The
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132	249		plan established pursuant to this section shall require that all
133	250		private carriers participate as a condition of their authority to
134	251		transact business in this state.
135		-
136	252		E. Prior to the operation of the plan established pursuant to
137	253		the provisions of this section, but in no event later than June 1,
138	254		2024, CompSource Mutual Insurance Company, a private, domestic
139	255		mutual insurance company incorporated in this state and regulated by
140	256		the Insurance Department, successor -in-interest to CompSource
141	257		Oklahoma, shall serve as the residual marke t mechanism for those
142	258		insureds who would otherwise be in the assigned risk plan.
143		-	Page 4
144		-	ENR. S. B. NO. 524
145	259		SECTION 3. REPEALER 85 O.S. 2021, Sections 375.1, 375.2,
146	260		375.3, 375.4, 375.5, 375.6, 375.7, 375.8, 375.9, 375.10, 375.11,
147	261		375.12, 375.13, and 396, are hereby rep ealed.
	262	+	SECTION 4. This act shall become effective November 1, 2022 .
148	263
149		-	SECTION 4. This act shall become effective Nove mber 1, 2022.
150		-	Page 5
151		-	ENR. S. B. NO. 524
152		-	Passed the Senate the 16th day of May, 2022.
153		-
154		-
155		-
156		-	Presiding Officer of the Senate
157		-
158		-
159		-	Passed the House of Representatives the 17th day of May, 2022.
160		-
161		-
162		-
163		-	Presiding Officer of the House
164		-	of Representatives
165		-
166		-	OFFICE OF THE GOVERNOR
167		-	Received by the Office of the Governor this _______ _____________
168		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
169		-	By: _______________________________ __
170		-	Approved by the Governor of the State of Oklahoma this _____ ____
171		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
172		-
173		-	_________________________________
174		-	Governor of the State of Oklahoma
175		-
176		-
177		-	OFFICE OF THE SECRETARY OF STATE
178		-	Received by the Office of the Secretary of State this _______ ___
179		-	day of __________________, 20 _______, at _______ o'clock _______ M.
180		-	By: _______________________________ __
181		-
	264	+	58-2-3880 RJ 5/10/2022 8:51:46 AM

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB524 Compare Versions