1. A. In conducting the business and affairs of the State Insurance Fund, the Commissioner of the said fund, or other officer to whom such power and authority may be delegated by the Commissioner, as provided by Section 133 of this title, shall have full power and authority:

   1. 1. To enter into contracts of insurance, insuring employers against liability for compensation, and insuring to employees and other persons entitled thereto compensation as provided by the Workers' Compensation Act, Section 1 et seq. of this title;
   2. 2. To decline to insure any risk in which the minimum requirements of the law with regard to construction, equipment and operation are not observed, or which is beyond the safe carrying of the State Insurance Fund, but shall not have power or authority, except as otherwise provided in this act to refuse to insure any compensation risk tendered with the premium therefor;
   3. 3. To enter into contracts of insurance insuring persons, firms and corporations against loss, expense or liability by reason of bodily injury, death by accident, occupational disability, or occupational disease suffered by employees for which the insured may be liable or have assumed liability;
   4. 4. To purchase reinsurance for any risk or any portion of any risk of the State Insurance Fund;
   5. 5. To inspect and audit, or cause to be inspected and audited the pay rolls of employers applying for insurance against liability for compensation;
   6. 6. To contract with physicians, surgeons and hospitals for medical and surgical treatment and the care and nursing of injured persons entitled to benefits from said fund;
   7. 7. To meet the reasonable expenses of conducting the business of the State Insurance Fund;
   8. 8. To produce a reasonable surplus to cover catastrophe hazard; and
   9. 9. To administer a program in compliance with Section 924.3 of Title 36 of the Oklahoma Statutes, whereby employers may appeal rating classification decisions which are disputed. The State Insurance Fund shall notify employers of the availability of the program.
2. B. The State Insurance Fund must be funded through actuarially sound rates and premiums charged to its policyholders.
3. C. The State Insurance Fund shall establish and use rates and rating plans to assure that it is self-funding while those rates are in effect.
4. D. No later than September 1 of each year, the State Insurance Fund shall obtain an independent actuarial certification of the results of its operations for prior years.
5. E. Any premium or assessments collected by the State Insurance Fund in excess of the amount necessary to fund its projected ultimate incurred losses and expenses and not paid to policyholders insured under the State Insurance Fund in conjunction with dividend programs shall be retained by the State Insurance Fund.
6. F. State Insurance Fund losses are the sole and exclusive responsibility of the State Insurance Fund, and payment for such losses must be funded in accordance with this section and must not come, directly or indirectly, from insurers or any guaranty association for such insurers, except for reinsurance purchased by the State Insurance Fund.

Laws 1933, SB 151, c. 28, p. 60, § 1; Amended by Laws 1937, HB 69, p. 489, § 6, emerg. eff. May 14, 1937; Amended by Laws 1994, 2nd Extr. Sess., HB 1002, c. 1, § 40, emerg. eff. November 4, 1994; Amended by Laws 1996, SB 1310, c. 363, § 8, eff. November 1, 1996.