Okla. Stat. tit. 85A, § 85A-38

A. An employer shall secure compensation to employees under

this act in one of the following ways:

1. By insuring and keeping insured the payment of compensation

with any stock corporation, mutual association, or other concerns

authorized to transact the business of workers' compensation

insurance in this state. When an insurer issues a policy to provide

workers' compensation benefits under the provisions of this act, it

shall file a notice with the Workers' Compensation Commission

containing the name, address, and principal occupation of the

employer, the number, effective date, and expiration date of the

policy, and such other information as may be required by the

Commission. The notice shall be filed by the insurer within thirty

(30) days after the effective date of the policy. Any insurer who

does not file the notice required by this paragraph shall be subject

to a fine by the Commission of not more than One Thousand Dollars

($1,000.00);

2. By obtaining and keeping in force guaranty insurance with

any company authorized to do guaranty business in this state. Each

company that issues workers' compensation guaranty insurance shall

file a copy of the contract with the Commission within thirty (30)

days after the effective date of the contract. Any company that

does not file a copy of the contract as required by this paragraph

shall be subject to a fine by the Commission of not more than One

Thousand Dollars ($1,000.00);

3. By furnishing satisfactory proof to the Commission of the

employer's financial ability to pay the compensation. The

Commission, under rules adopted by the Commission, shall require any

employer that has:

a. less than one hundred employees or less than One

Million Dollars ($1,000,000.00) in net assets to:

(1) deposit with the Commission securities, an

irrevocable letter of credit or a surety bond

payable to the state, in an amount determined by

the Commission which shall be at least an average

of the yearly claims for the last three (3)

years, or

(2) provide proof of excess coverage with such terms

and conditions as is commensurate with their

ability to pay the benefits required by the

provisions of this act, and

b. one hundred or more employees and One Million Dollars

($1,000,000.00) or more in net assets to:

(1) secure a surety bond payable to the state, or an

irrevocable letter of credit, in an amount

determined by the Commission which shall be at

Oklahoma Statutes - Title 85A. Workers' Compensation Page 64

least an average of the yearly claims for the

last three (3) years, or

(2) provide proof of excess coverage with terms and

conditions that are commensurate with their

ability to pay the benefits required by the

provisions of this act;

4. By forming a group self-insurance association consisting of

two or more employers which shall have a common interest and which

shall have entered into an agreement to pool their liabilities under

the Administrative Workers' Compensation Act. Such agreement shall

be subject to rules of the Commission. Any employer, upon

application to become a member of a group self-insurance

association, shall file with the Commission a notice, in such form

as prescribed by the Commission, acknowledging that the employer

accepts joint and several liability. Upon approval by the

Commission of such application for membership, said member shall be

a qualified self-insured employer; or

5. By any other security as may be approved by the Commission

and the Insurance Department.

B. The Commission may waive the requirements of this section in

an amount which is commensurate with the ability of the employer to

pay the benefits required by the provisions of this act.

Irrevocable letters of credit required by this subsection shall

contain such terms as may be prescribed by the Commission and shall

be issued for the benefit of the state by a financial institution

whose deposits are insured by the Federal Deposit Insurance
section in

an amount which is commensurate with the ability of the employer to

pay the benefits required by the provisions of this act.

Irrevocable letters of credit required by this subsection shall

contain such terms as may be prescribed by the Commission and shall

be issued for the benefit of the state by a financial institution

whose deposits are insured by the Federal Deposit Insurance

Corporation.

C. An employer who does not fulfill the requirements of this

section is not relieved of the obligation to pay compensation under

this act. The security required under this section, including any

interest, shall be maintained by the Commission as provided in this

act until each claim for benefits is paid, settled, or lapses under

this act, and costs of administration of such claims are paid.

D. Failure on the part of any employer to secure the payment of

compensation provided in this act shall have the effect of enabling

the Commission to assert the rights of an injured employee against

the employer.

E. Any employer that knowingly provides false information to

the Commission for purposes of securing or maintaining a self-

insurance permit shall be guilty of a Class D3 felony offense and

subject to a maximum fine of Ten Thousand Dollars ($10,000.00).