Okla. Stat. tit. 85A, § 85A-107

A. 1. All public entities of this state, their agencies and

instrumentalities, authorities, and public trusts of which they are

beneficiaries shall provide workers' compensation to their employees

and elected officials engaged in either governmental or proprietary

functions in accordance with this section. Compensation or

indemnification for compensation shall be paid out of the funds of

the public entities.

2. Except as otherwise provided, the state and all its

institutions of higher education, departments, instrumentalities,

institutions, and public trusts of which it or they are

beneficiaries shall insure against liability for workers'

compensation with CompSource Oklahoma and shall not be permitted to

insure with any other insurance carrier unless:

a. CompSource Oklahoma refuses to accept the risk when

the application for insurance is made,

b. specifically authorized by law,

c. the state entity can obtain workers' compensation

insurance coverage at the same cost or at a lower cost

from another insurance carrier licensed in this state,

or

Oklahoma Statutes - Title 85A. Workers' Compensation Page 121

d. CompSource Oklahoma begins operating as a mutual

insurance company.

3. a. The state, all state institutions of higher education

except comprehensive universities, and all state

departments, instrumentalities, institutions, and

public trusts of which the state is a beneficiary, may

self-insure. Self-insurance administration may only

be obtained through CompSource Oklahoma, unless

CompSource Oklahoma begins operating as a mutual

insurance company.

b. If CompSource Oklahoma begins operating as a mutual

insurance company:

(1) the state, all state institutions of higher

education except comprehensive universities, and

all state departments, instrumentalities,

institutions, and public trusts so electing to

self-insure shall pay premiums set by CompSource

Oklahoma which shall collect premiums, pay claims

and provide for excess insurance, and

(2) all dividends or profits accumulating from a

self-insurance program shall be refunded to the

participants on a formula devised by CompSource

Oklahoma.

B. All counties, cities and towns, their instrumentalities and

public trusts of which they are beneficiaries shall insure against

their liability for workers' compensation with CompSource Oklahoma

or, through any combination of the following, may:

1. Insure with an insurance carrier licensed in this state;

2. Self-insure and make any appropriation of funds to cover

their risk;

3. Secure reinsurance or excess insurance over and above a

self-insurance retention in any manner authorized by subsections B

and C of Section 167 of Title 51 of the Oklahoma Statutes; or

4. Secure compensation for their employees in the manner

provided in The Governmental Tort Claims Act, subsection C of

Section 167 of Title 51 of the Oklahoma Statutes.

C. Boards of education, their instrumentalities and public

trusts of which they are beneficiaries shall insure against their

liability for workers' compensation through any combination of the

following:

1. Insure with an insurance carrier licensed in Oklahoma;

2. Self-insure and make any appropriation of funds to cover

their risk; or

3. Secure reinsurance or excess insurance over and above a

self-insurance retention in any manner authorized by subsection B of

Section 168 of Title 51 of the Oklahoma Statutes.

Oklahoma Statutes - Title 85A. Workers' Compensation Page 122

D. Comprehensive universities shall insure against their

liability for workers' compensation with CompSource Oklahoma or, if

it can be demonstrated to the Board of Regents of the comprehensive

university prior to the inception date of a workers' compensation

policy that the policy will result in a lower cost than one with

CompSource Oklahoma or if CompSource Oklahoma begins operating as a

mutual insurance company, through any combination of the following:
ty for workers' compensation with CompSource Oklahoma or, if

it can be demonstrated to the Board of Regents of the comprehensive

university prior to the inception date of a workers' compensation

policy that the policy will result in a lower cost than one with

CompSource Oklahoma or if CompSource Oklahoma begins operating as a

mutual insurance company, through any combination of the following:

1. Insure with an insurance carrier licensed in Oklahoma; or

2. Self-insurance, making any appropriation of funds to cover

their risk.

E. In addition to any other provision of this section, city,

county, city-county, and public trust hospitals may insure with

other insurance carriers licensed in this state if it can be

demonstrated to the governing body of the hospital prior to the

inception date of a workers' compensation policy each year that the

policy will result in a lower cost than one with CompSource Oklahoma

or if CompSource Oklahoma begins operating as a mutual insurance

company.

F. For purposes of this act, all contracts of employment for

state, county, municipal, and state-funded educational entities and

public trusts will be considered to have been entered into in this

state regardless of where the work is performed.

G. When a person is employed by the state, a municipality, a

county, or by any political subdivision thereof, and, while off-duty

from the employment, is employed by a private employer, the private

employer alone shall be liable for compensation under this act for

any injury or death of the person arising out of and in the course

of employment which occurs during the hours of actual employment by

the private employer. The provisions of this subsection shall not

relieve the state, a municipality or a county, or any political

subdivision thereof, from providing disability benefits to which a

person may be entitled pursuant to a pension or retirement plan.

The provisions of this subsection shall not preclude an employee or

group of employees so employed from providing separate compensation

coverage for off-duty employment by a private employer.