A. A reinsuring carrier shall be subject to the provisions of this section.

B. There is hereby created a nonprofit entity to be known as the "Oklahoma Small Employer Health Reinsurance Program".

C. 1. The program shall operate subject to the supervision and control of the board. Subject to the provisions of paragraph 2 of this subsection, the board shall consist of eight (8) members appointed by the Insurance Commissioner plus the Commissioner, or his or her designated representative, who shall serve as an ex officio member of the board.

2.a.In selecting the members of the board, the Commissioner shall include representatives of small employers and small employer carriers and such other individuals determined to be qualified by the Commissioner. At least five members of the board shall be representatives of carriers and shall be selected from individuals nominated in this state pursuant to procedures and guidelines developed by the Commissioner.

b.In the event that the program becomes eligible for additional financing pursuant to paragraph 3 of subsection L of this section, the board shall be expanded to include two additional members who shall be appointed by the Commissioner. In selecting the additional members of the board, the Commissioner shall choose individuals who represent organizations offering categories of health insurance not already represented on the board, including but not limited to excess or stoploss health insurance. The expansion of the board under this subsection shall continue for the period that the program continues to be eligible for additional financing pursuant to paragraph 3 of subsection L of this section.

3. The initial board members shall be appointed as follows: two of the members to serve a term of two (2) years; three of the members to serve a term of four (4) years; and three of the members to serve a term of six (6) years. Subsequent board members shall serve for a term of three (3) years. A board member's term shall continue until his or her successor is appointed.

4. A vacancy on the board shall be filled by the Commissioner. A board member may be removed by the Commissioner for cause.

D. Upon the effective date of this act, the board shall develop a plan to wind up business of the Oklahoma Small Employer Health Reinsurance Program.

E. The board shall submit the plan to the Insurance Commissioner for approval within one hundred twenty (120) days of the effective date of this act.

F. The plan shall include, but not be limited to, an accounting of the funds and expenses of the Oklahoma Small Employer Health Reinsurance Program and a detailed description of the method of reimbursement of any funds or monies from the initial assessment to any reinsuring carriers.

Added by Laws 1994, c. 211, § 8, eff. July 1, 1994. Amended by Laws 1998, c. 304, § 5, eff. July 1, 1998; Laws 2000, c. 353, § 48, eff. Nov. 1, 2000; Laws 2010, c. 222, § 45, eff. Nov. 1, 2010.