(1) There is hereby created Pinnacol Assurance, which shall be a political subdivision of the state and shall operate as a domestic mutual insurance company except as otherwise provided by law. Pinnacol Assurance shall not be an agency of state government, nor shall it be subject to administrative direction by any state agency except as provided in this article, and except for the purposes of the "Colorado Governmental Immunity Act", article 10 of title 24, C.R.S. Pinnacol Assurance shall not be dissolved except by the general assembly. Section 10-12-411, C.R.S., shall not apply to Pinnacol Assurance.
(2) (a) The powers of Pinnacol Assurance shall be vested in the board of directors of Pinnacol Assurance, which shall have nine members. The members of the board shall be appointed by the governor with the consent of the senate. Of the nine members, four shall be employers whose liability under articles 40 to 47 of this title is insured by Pinnacol Assurance with one of such employers to be a farmer or rancher. Three of the nine members shall be employees of employers whose liability under articles 40 to 47 of this title is insured by Pinnacol Assurance. One of the nine members shall be experienced in the management and operation of insurance companies as defined in section 10-1-102 (6), C.R.S. Such member shall not concurrently serve as an owner, a shareholder, an officer, an employee, an agent of, or in any other capacity with any business which competes with Pinnacol Assurance. One of the nine members shall be experienced in finance or investments, but shall not be an employer whose liability under articles 40 to 47 of this title is insured by Pinnacol Assurance. The term of office for each such member shall be five years. The appointees may serve on a temporary basis if the senate is not in session when they are appointed until the senate is in session and is able to confirm such appointments. Vacancies on the board shall be filled by appointment of the governor for the remainder of any unexpired terms. The board shall elect a chairman annually from its membership.
The members of the board who were serving as of January 1, 2002, shall continue toserve until the completion of each member's term. New members of the board shall be appointed pursuant to paragraph (a) of this subsection (2).
The board shall have the powers, rights, and duties as set forth in this article andotherwise provided by law.
Members of the board shall be compensated one hundred forty dollars per diem plustheir actual and necessary expenses. Per diem compensation, not to exceed thirty days in any calendar year, shall be paid only when the board is transacting official business.
On and after July 1, 2002, the powers, duties, and functions formerly exercised bythe Colorado compensation insurance authority may be exercised by Pinnacol Assurance.
The board shall:
(a) (I) Appoint the chief executive officer of Pinnacol Assurance who shall serve under contract and appoint, hire, or delegate the authority to hire such other staff as may be necessary to carry out the duties of Pinnacol Assurance.
(II) If an executive officer of Pinnacol Assurance is appointed pursuant to subparagraph (I) of this paragraph (a) and such executive officer appoints, hires, or delegates duties to any other staff necessary to carry out the duties of Pinnacol Assurance, and the executive officer or other staff receives total compensation, including bonuses or deferred compensation, in an amount equal to or greater than one hundred fifty thousand dollars annually, such compensation information shall be a public record.
Develop and approve an annual budget;
Establish general policies and procedures for the operation and administration of
Pinnacol Assurance;
(Deleted by amendment, L. 2002, p. 1865, § 1, effective July 1, 2002.)
Promulgate policies and procedures that establish the basis by which employer premiums payable to Pinnacol Assurance are determined. The board may establish different rates for employers who meet the requirements established by the board for any classification after complying with the requirements of part 4 of article 4 of title 10, C.R.S., so long as those rates are not excessive, inadequate, or unfairly discriminatory.
Offer to provide workers' compensation insurance and employer's liability insurancecovering any liability of Colorado employers on account of personal injuries sustained by, or the death of, any employee. Nothing in this article shall be interpreted to permit Pinnacol Assurance to provide any other type of insurance or to provide insurance to employers that are not Colorado employers. Pinnacol Assurance shall not refuse to insure any Colorado employer or cancel any insurance policy due to the risk of loss or amount of premium, except as otherwise provided in this title.
Review and streamline administrative procedures;
Oversee the operations and make necessary personnel changes;
Review the investigative procedures and implement changes to expedite
investigations;
Review and recommend legislation pertaining to workers' compensation in articles 40 to 47 of this title and to clarify legal concepts related thereto;
Review the method of calculation of the experience modification factor with the object of providing maximum incentives for job safety;
Establish general policies and procedures by rule and regulation concerning medicalcare cost containment practices under articles 40 to 47 of this title; and
Post the date, time, and location of each board meeting on the Pinnacol Assurancewebsite at least seven calendar days prior to the scheduled meeting.
Article 4 of title 24, C.R.S., shall not apply to the promulgation of any policies orprocedures authorized by subsection (5) of this section.
Pinnacol Assurance may sell services, including but not limited to medical bill processing, that are developed pursuant to its powers under this article.
Employees of Pinnacol Assurance shall be exempt from the state personnel systembut shall, by acceptance of employment, be subject to the provisions of article 51 of title 24, C.R.S. Pinnacol Assurance shall provide for the deduction of employer and employee contributions from salary and for payment to the association of such deductions and for any other payments that would be due from a state employer.
Notwithstanding any provision of law to the contrary, the claim files of injured employees, the policy files of employers, and all business records relating to the determination of rates that are not required to be disclosed by any other insurance company shall not be subject to the provisions of part 2 of article 72 of title 24, C.R.S.
With respect to meetings of Pinnacol Assurance, matters relating to the claim filesof injured employees and policy files of employers shall not be subject to the provisions of part 4 of article 6 of title 24, C.R.S.
Pinnacol Assurance may enter into cooperative arrangements with any public orprivate entity for the purpose of carrying out its powers, duties, and functions. Nothing in this section shall require or be interpreted to require an employer to provide health insurance coverage for its employees.
Notwithstanding the provisions of subsection (1) of this section, upon the attainment of a reasonable surplus as set forth in section 8-45-111, the "Colorado Governmental Immunity Act", article 10 of title 24, C.R.S., shall not apply to Pinnacol Assurance.
Any member of the board who owns at least ten percent of an entity that enters intoa contract with Pinnacol Assurance shall disclose the board member's ownership interest in the entity. This disclosure shall be a public record.
Source: L. 90: Entire article R&RE, p. 531, § 1, effective July 1. L. 91: (8.5), (11), and (12) added, p. 1362, § 1, effective July 1. L. 95: (13) added, p. 987, § 1, effective May 25; (7)(b) amended, p. 636, § 16, effective July 1. L. 96: (1) amended, p. 1512, § 37, effective June 1. L. 97: (5)(e) and (11) amended and (5)(e.5) added, p. 935, § 1, effective May 21. L. 2000: (1) amended, p. 284, § 1, effective July 1. L. 2002: Entire section amended, p. 1865, § 1, effective
July 1. L. 2003: (2)(a) amended, p. 614, § 5, effective July 1. L. 2009: (2)(c) amended, (SB 09281), ch. 335, p. 1775, § 1, effective June 1. L. 2010: (5)(m) added, (HB 10-1009), ch. 273, p. 1255, § 1, effective July 1.
Editor's note: This section is similar to former § 8-54-102.5 as it existed prior to 1990.
Cross references: For the provisions that designate Pinnacol Assurance as a "special purpose authority" for the purposes of section 20 of article X of the Colorado constitution, see § 24-77-102 (15).