(1) The rates shall be the percentage of the payroll of any employer that, on the average, shall produce a sufficient sum to:
Carry all claims to maturity such that the rates shall be based upon the reserve andnot upon the assessment plan;
Produce a reasonable surplus as provided in articles 40 to 47 of this title, cover thecatastrophe hazard, and ensure the payment to employees and their dependents of the compensation provided in said articles.
In determining the amount of reserve to be laid aside to meet deferred paymentsaccording to awards, such reserve may be ascertained by finding the present worth of such deferred medical and indemnity payments calculated at a rate of interest not higher than six percent per annum, and such calculations of disability indemnity benefits shall be made according to a table of mortality not lower than the American experience table of mortality and, in the discretion of the board, by such other and further methods as will result in the establishment of adequate reserves.
The amounts raised for the Pinnacol Assurance fund shall ultimately become neithermore nor less than necessary to make the fund self-supporting, which includes the attainment and maintenance of an adequate surplus as determined in accordance with section 8-45-111, and the premiums or rates levied for such purpose shall be subject to readjustment from time to time by the board as may become necessary.
Source: L. 90: Entire article R&RE, p. 536, § 1, effective July 1. L. 91: (3) amended, p. 1362, § 2, effective July 1. L. 2002: Entire section amended, p. 1872, § 7, effective July 1.
Editor's note: This section is similar to former § 8-54-110 as it existed prior to 1990.