{"data":{"id":"us-ok/okla.-stat.-tit.-85a-85a-38","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 85A, § 85A-38","heading":"Securing compensation","body":"A. An employer shall secure compensation to employees under\n\nthis act in one of the following ways:\n\n1. By insuring and keeping insured the payment of compensation\n\nwith any stock corporation, mutual association, or other concerns\n\nauthorized to transact the business of workers' compensation\n\ninsurance in this state. When an insurer issues a policy to provide\n\nworkers' compensation benefits under the provisions of this act, it\n\nshall file a notice with the Workers' Compensation Commission\n\ncontaining the name, address, and principal occupation of the\n\nemployer, the number, effective date, and expiration date of the\n\npolicy, and such other information as may be required by the\n\nCommission. The notice shall be filed by the insurer within thirty\n\n(30) days after the effective date of the policy. Any insurer who\n\ndoes not file the notice required by this paragraph shall be subject\n\nto a fine by the Commission of not more than One Thousand Dollars\n\n($1,000.00);\n\n2. By obtaining and keeping in force guaranty insurance with\n\nany company authorized to do guaranty business in this state. Each\n\ncompany that issues workers' compensation guaranty insurance shall\n\nfile a copy of the contract with the Commission within thirty (30)\n\ndays after the effective date of the contract. Any company that\n\ndoes not file a copy of the contract as required by this paragraph\n\nshall be subject to a fine by the Commission of not more than One\n\nThousand Dollars ($1,000.00);\n\n3. By furnishing satisfactory proof to the Commission of the\n\nemployer's financial ability to pay the compensation. The\n\nCommission, under rules adopted by the Commission, shall require any\n\nemployer that has:\n\na. less than one hundred employees or less than One\n\nMillion Dollars ($1,000,000.00) in net assets to:\n\n(1) deposit with the Commission securities, an\n\nirrevocable letter of credit or a surety bond\n\npayable to the state, in an amount determined by\n\nthe Commission which shall be at least an average\n\nof the yearly claims for the last three (3)\n\nyears, or\n\n(2) provide proof of excess coverage with such terms\n\nand conditions as is commensurate with their\n\nability to pay the benefits required by the\n\nprovisions of this act, and\n\nb. one hundred or more employees and One Million Dollars\n\n($1,000,000.00) or more in net assets to:\n\n(1) secure a surety bond payable to the state, or an\n\nirrevocable letter of credit, in an amount\n\ndetermined by the Commission which shall be at\n\nleast an average of the yearly claims for the\n\nlast three (3) years, or\n\n(2) provide proof of excess coverage with terms and\n\nconditions that are commensurate with their\n\nability to pay the benefits required by the\n\nprovisions of this act;\n\n4. By forming a group self-insurance association consisting of\n\ntwo or more employers which shall have a common interest and which\n\nshall have entered into an agreement to pool their liabilities under\n\nthe Administrative Workers' Compensation Act. Such agreement shall\n\nbe subject to rules of the Commission. Any employer, upon\n\napplication to become a member of a group self-insurance\n\nassociation, shall file with the Commission a notice, in such form\n\nas prescribed by the Commission, acknowledging that the employer\n\naccepts joint and several liability. Upon approval by the\n\nCommission of such application for membership, said member shall be\n\na qualified self-insured employer; or\n\n5. By any other security as may be approved by the Commission\n\nand the Insurance Department.\n\nB. The Commission may waive the requirements of this section in\n\nan amount which is commensurate with the ability of the employer to\n\npay the benefits required by the provisions of this act.\n\nIrrevocable letters of credit required by this subsection shall\n\ncontain such terms as may be prescribed by the Commission and shall\n\nbe issued for the benefit of the state by a financial institution\n\nwhose deposits are insured by the Federal Deposit Insurance\nsection in\n\nan amount which is commensurate with the ability of the employer to\n\npay the benefits required by the provisions of this act.\n\nIrrevocable letters of credit required by this subsection shall\n\ncontain such terms as may be prescribed by the Commission and shall\n\nbe issued for the benefit of the state by a financial institution\n\nwhose deposits are insured by the Federal Deposit Insurance\n\nCorporation.\n\nC. An employer who does not fulfill the requirements of this\n\nsection is not relieved of the obligation to pay compensation under\n\nthis act. The security required under this section, including any\n\ninterest, shall be maintained by the Commission as provided in this\n\nact until each claim for benefits is paid, settled, or lapses under\n\nthis act, and costs of administration of such claims are paid.\n\nD. Failure on the part of any employer to secure the payment of\n\ncompensation provided in this act shall have the effect of enabling\n\nthe Commission to assert the rights of an injured employee against\n\nthe employer.\n\nE. Any employer that knowingly provides false information to\n\nthe Commission for purposes of securing or maintaining a self-\n\ninsurance permit shall be guilty of a Class D3 felony offense and\n\nsubject to a maximum fine of Ten Thousand Dollars ($10,000.00).","path":["OK Code","Title 85A"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os85A.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"329dce25c728fa0cd811a304abb28814b697389c37bf2141c36ce63ff2874287","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-85a-85a-37","next":"us-ok/okla.-stat.-tit.-85a-85a-39"},"notice":"GroundRules: Original legal text. Not legal advice."}