Signed by Governor Mary Fallin

Vote Smart's Synopsis:

Vote to pass a bill that requires private ownership of the state workers' compensation insurer, effective January 1, 2015.

Highlights:

• Requires the state workers’ compensation insurer to be organized and operated under Oklahoma law and be independent of the State of Oklahoma (Sec. 4).

• Requires the CompSource Oklahoma to be referred to as “CompSource Mutual Insurance Company” and to operate as a domestic mutual insurer without capital stock or shares (Sec. 4).

• Requires the CompSource Mutual Insurance Company to meet certain criteria including, but not limited to, the following criteria (Secs. 11-13 & 30):
• To be a continuation of CompSource Oklahoma with control of its property and fund;
• To be subject to premium taxes in the same manner as a domestic mutual insurance company authorized to write workers’ compensation insurance;
• To be a member of the Oklahoma Property and Casualty Insurance Guaranty Association; 
• To file all financial reports with the Oklahoma Workers’ Compensation Court and the Oklahoma Insurance Department; 
• To pay the Oklahoma Tax Commission a sum equal to 0.75 percent of the total worker’s compensation losses excluding medical payments and temporary disability compensation.

• Authorizes the CompSource Mutual Insurance Company to establish subsidiaries (Sec. 10).

• Requires the Insurance Commissioner of the Oklahoma Insurance Department to meet certain criteria including, but not limited to, the following criteria (Sec. 4):
• To regulate the CompSource Mutual Insurance Company;
• To approve the CompSource Mutual Insurance Company’s articles of incorporation; and
• To issue a certificate of authority to the CompSource Mutual Insurance Company to write workers’ compensation insurance.

• Authorizes the Insurance Commissioner to require the CompSource Mutual Insurance Company to file a report as the commissioner deems necessary if the commissioner has received complaints from individuals of unfair claim settlement practices by the company (Sec. 22)

Full Bill Text