Oklahoma Administrative Code
Title 810 - Oklahoma Workers' Compensation Commission
Chapter 25 - Workers' Compensation Insurance and Self Insurance
Subchapter 11 - Group Self-insurance Association Permit
Section 810:25-11-21 - Responsibilities of members' supervisory board
Universal Citation: OK Admin Code 810:25-11-21
Current through Vol. 41, No. 13, March 15, 2024
(a) The members' supervisory board shall be responsible for holding and managing the assets and directing the affairs of an association and shall be elected in the manner prescribed by the association's governing instruments. All board members must be members of the association. A board member shall not be an owner, officer, or employee of any entity under contract with the association.
(b) The board shall supervise the finances of the association and the association's operations to such extent as may be necessary to assure conformity with this Subchapter, the members' indemnity agreement and power of attorney, and the association's governing instruments. The members' supervisory board shall take all necessary precautions to safeguard the assets of the association, including, but not limited to the following:
(1) Monitoring the financial condition of
each member of the association, and doing all other acts to the extent
necessary to assure that each member continues to be able to fulfill the
obligations of membership. The board shall promptly report to the Commission
any grounds for believing that either a change in any member's financial
condition, withdrawal of a member, or any other circumstances might or does
affect the association's ability to meet its obligations;
(2) Retaining control of all monies either
collected or disbursed by and for the association. All loss funds of any type
shall remain in the custody of the board or the authorized administration;
provided, however, if a revolving fund is established for payment of
compensation due, and other related expenses, for the use of any authorized
TPA, the TPA shall furnish a fidelity bond covering its employees, with the
association as obligee, in an amount sufficient to protect all monies placed in
the revolving fund;
(3) Having the
accounts and records of the association audited annually or at any time the
Commission deems necessary. The Commission may prescribe a uniform accounting
system to be used by group self-insurance associations and/or TPAs and the type
of audits to be made in order that it may determine the solvency of the
association. Copies of the audit shall be filed with the Commission within one
hundred twenty (120) days after the close of the fiscal year. An association's
fiscal year may not be changed without prior Commission approval;
(4) Active efforts to collect delinquent
accounts resulting from any unpaid premiums by members. Any member of an
association who fails to pay the required premiums after due notice shall be
ineligible for the self-insurance privilege until such past due account,
including cost of collection, has been paid;
(5) The members' supervisory board shall hire
legal counsel when deemed to be necessary to represent the membership in
contested workers' compensation matters. Board members will be responsible for
monitoring fees paid to legal counsel;
(6) Neither the members' supervisory board
nor the administrator shall utilize any of the monies collected as premiums for
anything unrelated to the purposes of the group self-insurance association, to
workers' compensation, or to securing the members' liability under the AWCA.
Furthermore, they shall be prohibited from borrowing any monies from the
association without advising the Commission of the nature and purpose of the
loan and obtaining the Commission's approval. The board may, at its discretion,
invest its funds in accordance with
810:25-11-4;
(7) The members' supervisory board shall
assure that the administrator of the association and all records necessary to
verify the accuracy and completeness of records submitted to the Commission,
are maintained at a central location within the State of Oklahoma;
(8) The members' supervisory board and the
Commission should be notified in writing of all disputes regarding proper rate
classification codes. The Commission may appoint a professional to review the
Scopes Manual to determine the applicable classification code. The expense of
the professional service will be paid for by the association;
(9) The members' supervisory board shall
notify the Commission at least ten (10) days before all board meetings. Copies
of the minutes of all board meetings shall be submitted to the Commission
within thirty (30) days of the date of the meeting;
(10) The Commission must be notified within
ten (10) days of any change in the association's board. Any new board member
must submit to the Commission a properly executed biographical affidavit;
and
(11) The members' supervisory
board may designate a marketing firm or individuals to market the association's
program. The marketer or marketers of an association's program must be either
licensed insurance agents in the State of Oklahoma, or approved by the
Commission. All marketing materials must be submitted to the Commission before
being utilized by an association. Each sales interview must include a clear
presentation of a proposed member's joint and several liability.
Disclaimer: These regulations may not be the most recent version. Oklahoma may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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