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 Oklahoma Statutes (Last Updated: September 18, 2014)
 Title 85. WORKERS' COMPENSATION

  § 85-386. Percentage of premiums for surplus fund - Transfer to other funds - Reserves.  

Latest version.

  • NOTE:  This section is due to be repealed Jan. 1, 2015, by Laws 2013, c. 254, § 53.

    A.  1.  Ten percent (10%) of the premiums collected from all persons, firms or corporations insured in CompSource Oklahoma, shall be set aside by the CompSource Oklahoma President and Chief Executive Officer for the creation of surplus, until the surplus shall amount to the sum of Two Hundred Fifty Thousand Dollars ($250,000.00), and thereafter five percent (5%) of such premiums shall be set aside until such time as in the judgment of the State Insurance Board such surplus shall be sufficiently large to cover the catastrophe hazard, and all other unanticipated losses.

    2.  If the ratio of net premium-to-surplus exceeds 1:2 on July 1 of any year, the Board of Managers shall, within sixty (60) days, declare a dividend of sufficient size to reduce the ratio of net premium-to-surplus to no more than 1:2.  The dividend may be declared in the form of cash, cash equivalents, negotiable instruments, or credits against past, present, or future premiums on or before October 15 next following declaration of the dividend and shall be payable to policyholders having policies in force when the dividend is declared.

    B.  The Board of Managers is hereby vested with authority, in its discretion, to transfer funds from such surplus to other funds of CompSource Oklahoma when deemed necessary or advisable; provided, that in no event shall such surplus be reduced to a sum less than One Hundred Fifty Thousand Dollars ($150,000.00).

    C.  Reserves shall be established and maintained adequate to meet anticipated losses and to carry all claims and policies to maturity, which reserves shall be computed in accordance with rules adopted by the Board of Managers.

Added by Laws 1933, c. 28, p. 61, § 1 (§ 7), eff. July 1, 1933.  Amended by Laws 1937, p. 490, § 9, emerg. eff. May 14, 1937; Laws 1939, p. 585, § 2; Laws 2000, c. 248, § 4, eff. Sept. 1, 2000; Laws 2002, c. 50, § 15, eff. Nov. 1, 2002.  Renumbered from § 137 of this title by Laws 2011, c. 318, § 88.