OK SB702

Abolishes and dissolves CompSource Oklahoma effective at the closing date of a Plan of Sale, transferring its assets and liabilities to a single purchaser who must be an authorized Oklahoma insurance corporation.

Requires the Insurance Commissioner to adopt a Plan of Sale by July 31, 2011, with closing by December 31, 2011 (extendable to June 30, 2012), and submit it to the Governor and legislature for review and Supreme Court approval.

Mandates the Plan of Sale include assumption of all CompSource obligations, establishment of an assigned risk plan as residual market mechanism, and a five-year rate stability provision for small business policyholders with premiums under $25,000.

Requires retention of a major reinsurance firm to provide financial opinions that the Plan of Sale is reasonable and the purchase price is fair, with all cash proceeds paid to the State Treasurer for transaction expenses.

Transfers all CompSource rights, property, and obligations to the purchaser while preserving policyholders' and creditors' rights, subjecting the purchaser to Oklahoma Insurance Code requirements and assessments under the Property and Casualty Insurance Guaranty Act for claims with injury dates after closing.