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Five Fixes For Oklahoma Workers Comp- CompSource Aftermath


Workers Comp In Oklahoma – Five Fixes

I wrote five fixes for Workers Comp in Oklahoma to help small businesses.  My last post covered Oklahoma’s CompSource. I am under the impression that CompSource will be sold in the future. What could Oklahoma do to help small businesses when there is no insurer of last resort?  What would happen if CompSource Oklahoma became insolvent or severely underfunded?

Oklahoma Five Fixes city
Wikimedia Commons – Urbanative

1. Raise the minimum number of employees before an employer has to provide Workers Compensation coverage. Tennessee used to not require coverage unless there were more than five employees. North Carolina and other states only require Workers Compensation insurance if an employer has three or more employees.

2. The insurance risk pool will become the last insurer of resort when CompSource no longer exists. Oklahoma could soften the rates that the risk pool will charge to avoid the sticker shock that employers will incur when CompSource is sold. The rates in some state risk pools that I have examined can be up to 500% more than the regular market.

Business People Five Fixes Listening During Teleconference

3. The Oklahoma Department of Insurance could not allow the company that buys CompSource to cherry pick the best clients. An agreement could be made that the employers insured by CompSource would have to be covered for three years.

4. The Legislature could leave CompSource in place and remove its tax-free status. This would remove any advantages in pricing its Workers Compensation insurance.

5. If CompSource is not sold but converted to a private carrier, the amount of reserves should be heavily monitored for weakness. The Oklahoma Workers Comp insurance market would become chaotic if a carrier this large became insolvent.

Any results that have come from Nevada, West Virginia, and other states that have completely opened  up their insurance markets have all been very positive.

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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