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Oklahoma Statutes - Title 40. Labor Page 331 requirements contained in Section 634 of Title 36 of the Oklahoma Statutes. 3. For purposes of the Small Employer Health Reform Act, a PEO shall be considered the employer of all of its covered employees and all covered employees of one or more clients participating in a health benefit plan sponsored by a single PEO shall be considered employees of the PEO. 4. If a PEO offers to its covered employees any health benefit plan which is not fully insured by an authorized insurer, the plan shall: a. utilize a third-party administrator licensed to do business in this state, b. hold all plan assets, including participant contributions, in a trust account, and c. provide sound reserves for such plan as determined using generally accepted actuarial standards. G. Limitations on liability. Except to the extent otherwise provided in a professional employer agreement: 1. A PEO shall not be liable for the acts, errors, or omissions of a client, or of any covered employee when such covered employee is acting under the direction and control of a client; 2. A client shall not be liable for the acts, errors, or omissions of a PEO, or of any covered employee of the client and a PEO when such covered employee is acting under the direction and control of the PEO; 3. Nothing in this subsection shall serve to limit any contractual liability or obligation specifically provided in a professional employer agreement, nor shall this subsection in any way limit the liabilities and obligations of any PEO or client as defined elsewhere in the Oklahoma Professional Employer Organization Recognition and Registration Act; and 4. A covered employee is not, solely as the result of being a covered employee of a PEO, an employee of the PEO for purposes of general liability, insurance, fidelity bonds, surety bonds, employer’s liability which is not covered by workers’ compensation, or liquor liability insurance carried by the PEO unless the covered employees are included by specific reference in the professional employer agreement and applicable prearranged employment contract, insurance contract, or bond. H. Services not insurance. The sale of professional employer services provided by PEOs registered under the Oklahoma Professional Employer Organization Recognition and Registration Act shall not constitute the sale of insurance for purposes of Oklahoma Insurance Law. I. Sales taxes. Covered employees whose services are subject to sales tax shall be deemed the employees of the client for