January 20, 2010 - Statement from Ken Ross, president and CEO of Pinnacol Assurance

"Pinnacol Assurance representatives have been involved in continuing conversations since last March with the Legislature and the governor’s office, on issues relating to Pinnacol Assurance and its relations with the state. "

SB 281 Interim Committee

The Interim Committee Studying Issues Related to Pinnacol Assurance recommended seven bills for introduction during the 2010 legislative session, which began on January 13. These bills, like all pieces of legislation, will follow the standard process for how a bill becomes law in Colorado.

The Pinnacol Assurance Board of Directors has voted to support two bills, Senate Bill 013 and House Bill 1038. The board believes that Senate Bills 011 and 012 and House Bills 1009 and 1012 and Bill B all create significant roadblocks to Pinnacol's future success. The board is opposed to them on substantive grounds and because they are beyond the scope of the Interim Committee because they impact the entire workers' compensation industry.

Several bills create the potential to drive up Colorado's workers' compensation costs – currently the seventh lowest in the nation. Others are redundant as well as an inappropriate intrusion of the legislature into the operations of a company that, by statue, is directed to operate as a mutual insurance company.

Pinnacol is a well-run and financially sound company. The business community testified before the Interim Committee that Pinnacol has brought stability to Colorado's workers' compensation market, operates with exceptional transparency and is not broken and therefore does not need fixing. The Board believes that the bills it opposes would actually undermine Pinnacol's role as the backbone of Colorado's workers' compensation system.

For the full text of the proposed bill and Pinnacol's position on them, please see our 2010 Legislation section.