§ 8-45-107 — Basis of rates - reserve - surplus

(1) The rates shall be the
percentage of the payroll of any employer that, on the average, shall produce a
sufficient sum to:

(a) Carry all claims to maturity such that the rates shall be based upon the
reserve and not upon the assessment plan;

(b) Produce a reasonable surplus as provided in articles 40 to 47 of this title,
cover the catastrophe hazard, and ensure the payment to employees and their
dependents of the compensation provided in said articles.

(2) In determining the amount of reserve to be laid aside to meet deferred
payments according 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.

(3) The amounts raised for the Pinnacol Assurance fund shall ultimately
become neither more 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.

Legislative History

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.