Okla. Stat. tit. 36, § 36-6527

Oklahoma Statutes - Title 36. Insurance Page 1288

A. Each small employer carrier shall actively market health

benefit plan coverage to all eligible small employers in this state.

B. 1. Except as provided in paragraph 2 of this subsection, no

small employer carrier or agent shall, directly or indirectly,

engage in the following activities:

a. encouraging or directing small employers to refrain

from filing an application for coverage with the small

employer carrier because of the health status, claims

experience, industry, group size, occupation or

geographic location of the small employer, or

b. encouraging or directing small employers to seek

coverage from another carrier because of the health

status, claims experience, industry, group size,

occupation or geographic location of the small

employer.

2. The provisions of paragraph 1 of this subsection shall not

apply with respect to information provided by a small employer

carrier or agent to a small employer regarding the established

geographic service area or a restricted network provision of a small

employer carrier.

C. 1. Except as provided in paragraph 2 of this subsection, no

small employer carrier shall, directly or indirectly, enter into any

contract, agreement or arrangement with an agent that provides for

or results in the compensation paid to an agent for the sale of a

health benefit plan to be varied because of the health status,

claims experience, industry, group size, occupation or geographic

location of the small employer.

2. Paragraph 1 of this subsection shall not apply with respect

to a compensation arrangement that provides compensation to an agent

on the basis of percentage of premium, provided that the percentage

shall not vary because of the health status, claims experience,

industry, occupation or geographic area of the small employer.

3. A small employer carrier shall not implement, directly or

indirectly, agent commission schedules that vary the level of agent

commissions based on the size of the group or otherwise reduce

access to small employer health benefit plans.

4. Notwithstanding paragraph 3 of this subsection, a small

employer carrier may:

a. vary agent commission amounts or percentages based on

group size if the variation in the commission amounts

or percentages are inversely related to the size of

the group, or

b. vary agent commission amounts or percentages based on

the cumulative premium paid by a single small employer

over a specific period if the variation in the

commission amounts or percentages are inversely

Oklahoma Statutes - Title 36. Insurance Page 1289

related to the cumulative premium paid during the

period.

D. A small employer carrier shall provide reasonable

compensation, as provided under the plan of operation of the

program, to an agent, if any, for the sale of any health benefit

plan.

E. No small employer carrier may terminate, fail to renew or

limit its contract or agreement of representation with an agent for

any reason related to the health status, claims experience,

occupation, group size, or geographic location of the small

employers placed by the agent with the small employer carrier.

F. No small employer carrier or agent may induce or otherwise

encourage a small employer to separate or otherwise exclude an

employee from health coverage or benefits provided in connection

with the employee's employment.

G. Denial by a small employer carrier of an application for

coverage from a small employer shall be in writing and shall state

the reason or reasons for the denial. The reasons for denial shall

be limited to minimum participation requirements and minimum

contribution requirements.

H. The Insurance Commissioner may promulgate rules setting

forth additional standards to provide for the fair marketing and

broad availability of health benefit plans to small employers in

this state.

I. 1. A violation of this section by a small employer carrier
r the denial. The reasons for denial shall

be limited to minimum participation requirements and minimum

contribution requirements.

H. The Insurance Commissioner may promulgate rules setting

forth additional standards to provide for the fair marketing and

broad availability of health benefit plans to small employers in

this state.

I. 1. A violation of this section by a small employer carrier

or an agent shall be an unfair trade practice under Article 12 of

this title.

2. If a small employer carrier enters into a contract,

agreement or other arrangement with a third-party administrator to

provide administrative, marketing or other services related to the

offering of health benefit plans to small employers in this state,

the third-party administrator shall be subject to this section as if

it were a small employer carrier.