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ENGROSSED HOUSE AMENDME NT
TO
ENGROSSED SENATE BILL NO . 1069 By: Montgomery of the Senate
and
Sneed of the House
[ investment of funds - effective date ]
AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
and insert:
"An Act relating to insurance; amending 36 O.S. 2021,
Section 1901, as amended by Section 2, Chapter 119,
O.S.L. 2022 (36 O.S. Supp. 2022, Section 1901), which
relates to rehabilitat ion and liquidation; updating
statutory language; adding and modif ying definitions;
allowing certain persons and entities to exercise
certain contractual rights; establishing provisions
relating to agreement and contract terminations;
establishing requirem ents for insurance receivers;
exempting certain persons or entitie s from
provisions; providing for applicability of certain
provisions; providing for codification; and providing
an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKL AHOMA:
SECTION 1. AMENDATORY 36 O.S. 20 21, Section 1901, as
amended by Section 2, Chapter 119, O.S.L. 2022 (36 O.S. Supp. 2022,
Section 1901), is amended to read as follows:
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Section 1901. For the purpose of Article 19 of the Oklahoma
Insurance Code:
1. "Impairment" or "insolvency." The "insolvency" means the
capital of a stock insurer, or limited stock life, accident and
health insurer, the net assets of a Lloyds association, or the
surplus of a mutual or reciprocal insurer, shal l be deemed to be
impaired and the insurer shall be deemed to be insolvent, when such
insurer shall not be possessed of assets at least equal to all
liabilities and required reserves together with its total issued and
outstanding capital stock if a stock i nsurer, the net assets if a
Lloyds association, or the minimum su rplus if a mutual or reciprocal
insurer required by this code Code to be maintained for the kind or
kinds of insurance it is then authorized to transact;
2. "Insurer" means any person, firm, corporation, health
maintenance organizations, association or ag gregation of persons
doing an insurance business and subject to the insurance supervisory
authority of, or to liquidation, rehabilitation, reorganization or
conservation by the Insurance Comm issioner or the equivalent
insurance supervisory official of anot her state;
3. "Delinquency proceeding" means any proceeding commenced
against an insurer pursuant to this article for the purpose of
liquidating, rehabilitating, reorganizing or conserving s uch
insurer;
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4. "State" means any state of the United States and also the
District of Columbia, Alaska, Hawaii, and Puerto Rico;
5. "Foreign country" means territory not in any state;
6. "Domiciliary state" means the state in which an insurer is
incorporated or organized, or in the case of an insurer incorporated
or organized in a foreign country, the state in which such insurer,
having become authorized to do business in such state, has at the
commencement of delinquency proceedings, the largest amount of its
assets held in trust and assets held on deposit for the be nefit of
its policyholders or policyholders and creditors in the United
States, and any such insurer is deemed to be domiciled in such
state;
7. "Ancillary state" means any state other than a domiciliary
state;
8. "Reciprocal state" means any state other than this state
that has enacted a law that sets forth a scheme for the
administration of an insurer in receivership by the state 's
Insurance Commissioner insurance commissioner or comparable
insurance regulatory official;
9. "General assets" means all property, real, personal or
otherwise, not specifically mortgaged, pledged, deposited or
otherwise encumbered for the security or benefit of specified
persons or a limited class or classes of persons, and as to such
specifically encumbered property the term includes all such property
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or its proceeds in excess of the amount necessary to discharge the
sum or sums secured thereby. Assets held in trust and assets held
on deposit for the security o r benefit of all policyholders or all
policyholders and creditors in the United States shall be deemed
general assets;
10. "Preferred claim" means any claim with respect to which the
law of the state or of the United States accords priority of
payments from the general assets of the insurer;
11. "Special deposit claim " means any claim secured by a
deposit made pursuant to statute for the security or benefit of a
limited class or classes of persons, but not including any general
assets;
12. "Secured claim" means any claim secured by mortgage, trust
deed, pledge, deposi t as security, escrow, or otherwise, but not
including special deposit claim or claims against general assets.
The term also includes claims which more than four (4) months prior
to the commencement of delinquency proceedings in the state of the
insurer's domicile have become liens upon specific assets by reason
of judicial process; and
13. "Receiver" means receiver, liquidator, rehabilitator, or
conservator as the context may require ; and
14. "Qualified financial contract " means a commodity contract,
forward contract, repurchase agreement, securities contract, swap
agreement, and any similar agreement the Commissioner determines by
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rule, regulation, resolution, or order to be a qualified fi nancial
contract.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1926.1 of Title 36, unless there
is created a duplication in numbering, reads as follows:
A. As used in this section:
1. "Actual direct compensatory damages " means normal and
reasonable costs of cover or other reasonable measures of damages
utilized in the derivatives, securities, or other market for the
contract and agreement claims. Provided, actual direct compensatory
damages shall not include punitive or exemplary damages , damages for
lost profit or lost opportunity, or damages for pain and suffering;
2. "Business day" means a day other than a Saturday, Sunday, or
any day on which either the New York Stock Exchange or t he Federal
Reserve Bank of New York is closed;
3. "Contractual right" means any right set forth in a rule or
bylaw of a derivatives clearing organization, a multilateral
clearing organization, a national securities exchange, a national
securities association, a securities clearing agency, a contract
market designated under the federal Commodity Exchange Act, a
derivatives transaction execution facility registered under the
federal Commodity Exchange Act, or a board of trade or in a
resolution of the govern ing board thereof and any right, whether or
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not evidenced in writing, arising under statutory or common law, or
under law merchant, or by reason of normal business practice; and
4. "Walkaway clause" means a provision in a netting agreement
or a qualified financial contract which, after calculation of a
value of a party's position or an amount due to or from one of the
parties in accordance with its terms upon termination, liquidation,
or acceleration of the netting agreement or qualified financial
contract, either does not create a payment obligation of a pa rty or
extinguishes a payment obligation of a party in whole or in part
solely because of the party 's status as a non-defaulting party.
B. Notwithstanding any other provision of the Oklahoma
Insurance Code, including any other provision permitting the
modification of contracts, no person or entity shall be stayed or
prohibited from exercising:
1. A contractual right to cause termination, liquidation,
acceleration, or closeout of obligations under or in connection with
any netting agreement or qualified fi nancial contract with an
insurer because of:
a. the insolvency, financial condition, or default of the
insurer at any time, provided the right is enforceable
under applicable law other than the provision s of this
act, or
b. the commencement of a formal delinquency pro ceeding
under the provisions of this section;
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2. Any right under a pledge, security, collateral,
reimbursement, guarantee agreement or arrangement, any other similar
security agreement or ar rangement, or other credit enhancement
relating to one or more ne tting agreements or qualified financial
contracts;
3. Subject to any provision of Section 1928 of Title 36 of the
Oklahoma Statutes, any right to set off or net out any termination
value, payment amount, or other transfer obligation arising under or
in connection with one or more qualified financial contracts where
the counterparty or its guarantor is organized under the laws of the
United States or a state or a foreign jurisdiction approved by the
Securities Valuation Office (SVO) of the National Associat ion of
Insurance Commissioners (NAIC) as eligible for netting; or
4. If a counterparty to a master netting agreement or a
qualified financial contract with an insurer subject to a proceeding
under this section terminates, liquidates, closes out, or
accelerates the agreement or contract, damages shall be measured as
of the date or dates of termination, liquidation, closeout, or
acceleration. The amount of a claim for damages shall be actual
direct compensatory damages calculated in ac cordance with subsecti on
G of this section.
C. 1. Upon termination of a netting agreement or qualified
financial contract, the net or settlement amount, if any, owed by a
non-defaulting party to an insurer again st which an application or
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petition has been filed under this sec tion shall be transferred to
or on the order of the receiver for the insurer, even if the insurer
is the defaulting party, notwithstanding any walkaway clause in the
netting agreement or qual ified financial contract.
2. Any limited two-way payment or first method provision in a
netting agreement or qualified financial contract with an insurer
which has defaulted shall be deemed to be a full two -way payment or
second method provision as agains t the defaulting insurer. Any such
property or amount shall, exc ept to the extent it is subject to one
or more secondary liens or encumbrances or rights of netting or
setoff, be a general asset of the insurer.
D. In making any transfer of a netting agree ment or qualified
financial contract of an insurer subject to a p roceeding under this
section, the receiver shall either:
1. Transfer to one party, other than an insurer subject to a
proceeding under this section, all netting agreements and qualified
financial contracts between a counterparty or a ny affiliate of the
counterparty and the insurer which is the subject of the proceeding,
including:
a. all rights and obligations of each party under each
netting agreement and qualified financial contract,
and
b. all property, including any guarantees or other credit
enhancement, securing any claims of each party under
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each netting agreement and qualified financial
contract; or
2. Transfer none of the netting agreements, qualified financial
contracts, rights, obl igations, or property referred to in paragr aph
1 of this subsection, with respect to the counterparty and any
affiliate of the counterparty.
E. If a receiver for an insurer makes a transfer of one or more
netting agreements or qualified financial contract s, then the
receiver shall use its best eff orts to notify any per son who is
party to the netting agreements or qualified financial contracts of
the transfer by twelve o 'clock p.m. on the business day following
the transfer.
F. Notwithstanding any other pr ovision of the Oklahoma
Insurance Code, a receiver shall not avoi d a transfer of money or
other property arising under or in connection with a netting
agreement, qualified financial contract, or any pledge, security,
collateral or guarantee agreement, or a ny other similar security
arrangement or credit support document relating to a netting
agreement or qualified financial contract which is made before the
commencement of a formal delinquency proceeding under this Code.
Provided, however, a transfer may be avoided under Section 1926 of
Title 36 of the Oklahoma Statutes if the transfer was made with
actual intent to hinder, delay, or defraud the insurer, a receiver
appointed for the insurer, or existing or future creditors.
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G. 1. In exercising the rights o f disaffirmance or repudiation
of a receiver with respect to any netting agreement or qualified
financial contract to which an insurer is a party, the receiver for
the insurer shall either:
a. disaffirm or repudiate all netting agreements and
qualified financial contracts between a counterparty
or any affiliate of the c ounterparty and the insurer
which is the subject of the proceeding, or
b. disaffirm or repudiate none of the netting agreements
and qualified financial contracts referred to in
subparagraph a of this paragraph with respect to the
person or any affiliate of the person or entity.
2. Notwithstanding any other provision of this Code, any claim
of a counterparty against the estate arising from the receiver 's
disaffirmance or repudiation of a netti ng agreement or qualified
financial contract which has not been p reviously affirmed in the
liquidation or immediately preceding a conservation or
rehabilitation case shall be determined and shall be allowed or
disallowed as if the claim had arisen before t he date of the filing
of the petition for l iquidation or, if a co nservation or
rehabilitation proceeding is converted to a liquidation proceeding,
as if the claim had arisen before the date of the filing of the
petition for conservation or rehabilitation. The amount of the
claim shall be the actua l direct compensatory damages determined as
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of the date of the disaffirmance or repudiation of the netting
agreement or qualified financial contract.
H. The provisions of this section shall not apply to persons o r
entities who are affiliates of the insure r which is the subject of
the proceeding.
I. All rights of counterparties under this Code shall apply to
netting agreements and qualified financial contracts entered into on
behalf of the general account or separ ate accounts if the assets of
each separate account are available only to counterparties to
netting agreements and qualified financial contracts entered into on
behalf of the separate account.
SECTION 3. This act shall become effective Nov ember 1, 2023."
Passed the House of Representatives the 26th day of April, 2023.
Presiding Officer of the House of
Representatives
Passed the Senate the ____ day of _______ ___, 2023.
Presiding Officer of the Senate
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ENGROSSED SENATE
BILL NO. 1069 By: Montgomery of the Senate
and
Sneed of the House
[ investment of funds - effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 4. AMENDATORY 36 O.S. 2021, Section 1601, is
amended to read as follows:
Section 1601. Except as to Sections 1624 and 1625 and
subdivision subsection A of Section 1606 hereof, this article
applies to domestic insurers , CompSource Mutual Insurance Company,
the Multiple Injury Trust Fund, and the Self-insurance Guaranty F und
only. This article shall apply to domest ic title insurers except as
provided in Article 50 (Title Insurers ).
SECTION 5. AMENDATORY 85A O.S. 2021, Section 28, is
amended to read as follows:
Section 28. A. There are established within the Office of the
State Treasurer two separate funds:
1. The “Multiple Injury Trust Fund ”; and
2. The “Self-insurance Guaranty Fund ”.
B. Except as provided in Section 97 of this title, no mo ney
shall be appropriated from these funds for any purpose exce pt for
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the use and benefit, or at t he direction, of the Okla homa Workers’
Compensation Commission.
C. Except as provided in Section 96 of this title, al l funds
established under this section s hall be administered, disbursed, and
invested under the directi on of the Commission and the State
Treasurer. Funds shall be invested by the State Treasurer pursuant
to Section 1601 et seq. of Title 36 of the Oklahoma Statutes.
D. All incomes derived thro ugh investment of the Multiple
Injury Trust Fund shall be credi ted as investment income to the fund
that participated in th e investment.
E. No monies deposited to these funds shall be subject to any
deduction, tax, levy, or any other type of assessment.
F. If the balance in the Multiple Injury Trust Fund becomes
insufficient to fully compensate those employees to whom it is
obligated, payment shall be suspended until such time as the
Multiple Injury Trust Fund is capable of meeting its obligations,
paying all arrearages, and restoring normal benefit payments.
G. On the effective maturity dates of each investment, the
investment shall be transferred to the State Treasurer for deposit
into the Multiple Injury Trust Fund created in this section.
H. Unless provided otherwise in the Administrative Workers ’
Compensation Act, all fines and penalties assessed under the
Administrative Workers’ Compensation Act shall be deposited into the
Workers’ Compensation Commission Revolving Fund. Any monies
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remaining in the Workers’ Compensation Fund on June 30, 2015, shall
be transferred to the Workers’ Compensation Commission Revolving
Fund.
SECTION 6. AMENDATORY 85A O.S. 2021, Section 31, is
amended to read as follows:
Section 31. A. The Multiple Injury Trust Fund shall be derived
from the following additi onal sources:
1. As soon as practi cable after January 1 of each year, the
commissioners of the Workers ’ Compensation Commission shall
establish an assessment r ate applicable to each mutua l 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 pu rposes of computing the asse ssment
authorized by this section necessary to pay the annual obliga tions
of the Multiple Injury Trust Fund determined on or bef ore December
31 of each year by the Multiple Injury Trust Fund (MITF) Director,
provided for in subs ection Q of this section, to be outstanding for
the next calendar year. 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 est ablished by the MITF Directo r until the
Multiple Injury Trust Fund repays in full the amount due on any loan
from CompSource Mutual Insurance Company or its predecessor
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CompSource Oklahoma. If the MITF Director and CompSource Mutual
Insurance Company have not agreed on the assessmen t rate within
thirty (30) days, the Workers ’ Compensation Commission shall set an
assessment rate suffi cient to cover all forese eable obligations of
the Multiple Injury Trust Fund, including interest and prin cipal
owed by the fund on any loan;
2. The assessments shall be paid to the Oklahoma Tax
Commission. Insurance car riers, self-insurers, and group sel f-
insurance associations shall pay the assessment in four equal
installments not later than the fifteenth day of the month following
the close of each qu arter 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 ca lendar quarter for w hich the
assessment is due. Assessments are expressly conditioned and
contingent upon preserva tion of the rebate equal to two -thirds (2/3)
of the amount of the assessment actually paid pursuant to Sections
6101 and 6102 of Title 68 of the Oklahoma Statute s. 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.
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a. The assessment authorized in this section s hall be
determined using a rate equal to the proportion that
the sum of the outstanding obligations of the Multiple
Injury Trust Fund as determined pursua nt to paragraph
1 of this subsection bears to the combined gross
direct written premiums of all such i nsurers; all
actual paid losses of all individual self -insureds;
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 adjustme nt expenses
and reserves, and
(2) “normal premium” means a standard premium less
any discounts;
3. By April 15 of each year, t he Insurance Commissioner, the
MITF Director and each individual and group self -insured shall
provide the Workers’ Compensation Commission with such information
as the Commission may determine is necessary to effectuate the
purposes of this section;
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4. Each mutual or interinsurance association, stock company, or
other insurance carrie r writing workers’ compensation insurance in
this state, and each employer carrying its own risk, including each
group self-insurance association, sha ll be notified by the Wor kers’
Compensation Commission in writing of the rate for the assessment on
or before May 1 of each year in which a rate is determ ined. The
rate determined by the Commission shall be in effect for four
calendar quarters beginning J uly 1 following determina tion by the
Commission. The Commission may amend its previously determined rate
on or after July 1, 2019. Parties affected by t he amended rate
shall be notified by the Commission in writing as i s reasonable;
5. a. No mutual or interinsurance association, stock
company, or other insurance carrier writing workers’
compensation insuranc e in this state may be assessed
in any year an amoun t greater than seven percent (7%)
of the gross direct written p remiums of that insurer.
The authorization for a maximum seven-percent
assessment shall exist until fiscal year 2027 , then
revert back to six percent (6%) thereafter.
b. No employer carrying i ts own risk may be assessed in
any year an amount greater than seven percent (7%) of
the total actual paid losses of that individual self-
insured. The authorization for a maximum seven -
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percent assessment shall exist until fiscal year 2027,
then revert back to six percent (6%) thereafter.
c. No group self-insurance association may be asses sed in
any year an amount greater than seven percent (7%) of
the normal premium of that group self -insurance
association. The authorization for a maximum seven -
percent assessment shall exist until fiscal year 2027,
then revert back to six percent (6%) thereafter;
6. The Oklahoma Tax Commissi on shall assess and collect from
any uninsured employer a temporary assessment at the rate of five
percent (5%) of the total compensa tion for permanent total
disability awards, permanent partial disability awards and death
benefits paid out during each qua rter of the calendar year by
employers. The assessment shall be paid in four equ al installments
not later than the fifteenth day of the month following the close of
the calendar year of the assessments. For the purpose of this
paragraph, “uninsured employer” means an employer required by law to
secure its workers’ compensation obligations but who has failed or
neglected to do so;
7. For injuries occurring on or after July 1, 2019, the
Oklahoma Tax Commission shall assess and coll ect from claimants a
temporary assessment as follows:
a. if an award has been made by the Workers ’ Compensation
Court of Existing Claims or the Workers ’ Compensation
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Commission for permanent partial disability o r
permanent total disability, or if a Comprom ise
Settlement or Joint P etition has been approved, the
employer or insurance carrier shall pay to such
employee the amount of the award less the assessment.
The assessment shall be paid to the Oklahoma Tax
Commission no later than the fifteenth day of th e
month following the clo se of each quarter of the
calendar year in which compensation is paid or became
payable, and
b. in making and entering awards for com pensation for
permanent total disability or permanent partial
disability, three percent (3%) of th e total award or
settlement shall be paid to the Tax Commission no
later than the fifteenth day of the mon th following
the close of each quarter of the calend ar year in
which compensation is paid or became payab le. The
total amount of the deduction so det ermined and fixed
shall have the same force and effect as an award for
compensation, and all provisions re lating to the
collection of awards shall apply to su ch judgments;
and
8. If the revenue in any one (1) y ear is insufficient to make
all necessary payments for obligations of the Multiple Injury Trust
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Fund and for the allocations provided for in subsection J of this
section, the unpaid portion shall be paid as soon thereafter as
funds become available.
B. The Multiple Injury Trust Fund is hereby author ized to
receive and expend monies appropriated by the Legislature.
C. It shall be the duty of the Tax Com mission to collect the
payments provided for in this act. The Tax Commission is hereby
authorized to bring an action for the recovery of any delinque nt or
unpaid payments required in this section.
D. Any mutual or inter insurance association, stock compan y, or
other insurance company, which is subject to r egulation by the
Insurance Commissioner, failing to m ake payments required in this
act promptly and correctly, and failing to report payment of the
same to the Insurance Commissioner within ten (10) days of payment
shall be subject to administrative penalt ies as allowed by law,
including but not limited to a fine in the amount of Five Hundred
Dollars ($500.00) or an amount equ al to one percent (1%) of the
unpaid amount, whichever is greater, to be paid to the Insurance
Commissioner.
E. Any employer carryin g its own risk, or group self-insurance
association failing to make payments required in this act promptly
and correctly, and failing to report payment of the same to th e
Commission within ten (10) days o f payment shall be subject to
administrative penalti es as allowed by law, including but not
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limited to a fine in the amount of Five Hundred Dollars ($ 500.00) or
an amount equal to one percent (1%) of the unpaid amount, wh ichever
is greater, to be paid to t he Commission.
F. 1. On or before the first day of April of each year, the
State Treasurer shall advise the Commission, the MITF Director and
the Tax Commission of the amoun t of money held as of March 1 of that
year by the State Treasurer to the credit o f the Multiple Injury
Trust Fund. On or before the first day of November of each year,
the State Treasurer shall advise the Commission, the MITF Dire ctor
and the Tax Commissi on of the amount of money held as of October 1
of that year by the State Treasure r 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 t o CompSource Mutual Insur ance
Company or its predecessor CompSource Okl ahoma, 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 tha t year by
the State Treasurer to the credit of the Multiple
Injury Trust Fund, and
b. advise the Chief Exe cutive Officer of CompSource
Mutual Insurance Compan y on or before the first day of
November of the money held as of October 1 of that
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year by the State Treasurer to the credi t of the
Multiple Injury Trust Fund.
G. Eighty percent (80%) of all sums held by the State Treasurer
to the credit of the Multiple I njury Trust Fund may by order of the
MITF Director be invested in or loaned on the pledge of any o f 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 ; or may be invested pursuant to
Section 1601 et seq. of Title 36 of the Oklahoma Statutes . 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 b e 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 sa me into the Multiple Inju ry
Trust Fund. The State Treasur er shall pay by vouchers dr awn on the
Multiple Injury Trust Fund for the making of such investments, when
signed by the MITF Director, upon delivery of such sec urities or
evidence of indebtedness to the State Treasurer. Th e MITF Director
may sell any of such securities, the proceed s thereof to be paid
over to the State Treasurer for the Multiple Injury Trust Fund.
H. The refund provisions of Sections 227 throug h 229 of Title
68 of the Oklahoma Stat utes shall be applicable to any payments made
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to the Multiple Injury Trust Fund. Ref unds shall be paid f rom and
out of the Multiple Injury Trust Fund.
I. Beginning July 1, 2019, One Million Dollars ($1,000,000.00)
of the funds in the Multiple Injury Trust Fund shall be transferr ed
annually on July 1 to the Ok lahoma Department of Labor Re volving
Fund exclusively for the operation and administration of the
Oklahoma Occupational Health and Safety Standards Act and for ot her
necessary expenses of the Departm ent of Labor.
J. Except for the monies provided for in subsection I of this
section, the Tax Commission s hall 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. The State
Treasurer shall pay out of the Multiple Injury Trust Fund only upon
the order and directio n of the Workers’ Compensation Commission
acting under the provisions hereof.
K. The Commission shall promulgate rules as the Commission
deems necessary to effectuate the prov isions of this section.
L. 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.
M. The MITF Director shall have authority to fulfill all
payment obligations of the Multiple In jury Trust Fund.
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N. The Multiple Injury Trust Fund may enter into an agreement
with any reinsurer licensed to se ll reinsurance by the Insurance
Commissioner pursuant to a comp etitive process administer ed by the
Director of Central Purc hasing in the Office of Management and
Enterprise Services.
O. Any dividend, rebate, or other distribution, payable by
CompSource Mutual Insurance Company or any other workers’
compensation insurance carrier, to a state agency policyholder shall
be paid to the State Treasure r, 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 sh all be used by the Multiple Injury
Trust Fund to meet al l lawful obligations of the Multiple Injury
Trust Fund; and
2. Otherwise, all future dividends made by any worke rs’
compensation insurance carrier, on behalf of state agencies , shall
be deposited to the credit of the General Revenue Fu nd of the State
Treasury.
P. The Workers’ Compensation Commission shall be charged with
the administration and protection of the Mul tiple Injury Trust Fund.
Q. The person serving as the Administ rator of the Multiple
Injury Trust Fund on the date of passa ge and approval of t his act
shall serve as the initial MITF Director, provided such person is
serving as the Administrator of the Mul tiple Injury Trust Fund on
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the effective date of this act. The MITF Director shall be
appointed by and serve at the pleasu re of the Governor.
R. Any party interested shall have a right to bring a
proceeding in the Supreme Court to review an award of the Workers’
Compensation Commission affecting such Multiple Injury Trust Fund,
in the same manner as is provided by law with r eference to other
awards by the Commission.
S. The State Treasurer shall allocate to the Commission out of
the Multiple Injury Trust Fund sufficient funds for administration
expenses thereof in a mounts to be fixed and approved by the Director
for the Multiple Injury Trust Fu nd, unless rejected by the Workers’
Compensation Commission.
T. On or after July 1, 2019, accrued and unpaid com pensation
from the Multiple Injury Trust Fund shall bear simple interest only
at the percentage rate applicable under Secti on 727.1 of Title 12 of
the Oklahoma Statutes from the day an award is made by the Workers ’
Compensation Court of Existing Claims or the Workers’ Compensation
Commission.
SECTION 7. This act shall become effective November 1, 2023.
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Passed the Senate the 23rd day of March, 2023.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __ ________,
2023.
Presiding Officer of the House
of Representatives