The Oklahoma Supreme Court has upheld a plan to convert the state workers’ compensation insurance agency into a mutual company.
The state’s highest court handed down a decision on March 11 that affirms legislation adopted last year to convert CompSource Oklahoma into the CompSource Mutual Insurance Co. The new company would be organized under state law, but independent of the state. The change goes into effect on Jan. 1.
The legislation was challenged in a lawsuit filed by the Tulsa Stockyards Inc., which alleged that CompSource is a state agency and its money and other assets, valued at about $265 million, are assets of the people of Oklahoma.
The Supreme Court ruled that CompSource’s assets are held in trust for the benefit of employers and employees protected by insurance issued by CompSource.
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