SECTION 260:70-11-1. Deductible levels and premiums

(a)   Deductible amounts payable by the agency or other covered entity for losses to buildings, contents, and other property will be set by the Administrator with the approval of the Director of the Office of Management and Enterprise Services. Deductible amounts or percentages may vary by types and use of property, and by actual or replacement value.

(b)   An annual premium will be levied and collected from each state agency pursuant to 74 O.S. Section 85.58M, in order to cover the purchase of excess insurance against catastrophic losses and to cover future losses using verifiable loss histories. Each state agency shall pay in full the premiums billed to them by the Risk Management Department for property and casualty insurance coverage. An invoice is due and payable upon receipt. Delinquent accounts will be collected pursuant to 74 O.S. Section 85.58M.

(c)   Annual premiums will be determined using a combination of identified markets available for acquisition of commercial excess insurance and verified loss history. The annual premiums will be reasonable and determined by the Risk Management Administrator with the approval of the Director of the Office of Management and Enterprise Services.

(d)   Property losses will be determined by the Risk Management Department and/or a third party administrator under contract. These losses will be based on industry accepted investigations and resulting appraisals of estimated damages.

[Source: Added at 31 Ok Reg 1467, eff 9-12-14]