The Oklahoma Workers’ Compensation Commission has adopted new regulations surrounding workers’ compensation benefits. The regulations create a program that allows employers to opt out of purchasing workers’ compensation insurance and instead meet requirements to qualify for an injury benefits plan. Among those requirements is the purchase of a surety bond.
The amount of the surety bond will vary. It must be the greater of these amounts, as determined by the Insurance Commissioner:
- employer’s average yearly incurred workers’ compensation losses for three years preceding the application date
- for renewal applicants, the amount of the outstanding claims reserves for the employer, as determined by an approved third-party administrator
In lieu of a surety bond, employers can post another form of security approved by the Commission, including an irrevocable letter of credit from an approved financial institution.
Read more about becoming a self-insured employer in the Oklahoma Administrative Code 810:25-9. If you have questions regarding surety bond requirement, contact the Oklahoma Workers’ Compensation Commission or SuretyBonds.com.
Photo courtesy KT King (CC BY 2.0)