§ 8-45-112 — Amendment of rates - distribution to policyholders

The board
may amend at any time the rates for any class. No contract of insurance between
Pinnacol Assurance and any employer shall be in effect until a policy or binder has
been actually issued by the board and the premium therefor paid as and when
required by this article. Not less often than once a year the chief executive officer
shall tabulate the earned premiums paid by policyholders of Pinnacol Assurance.
Should the experience of the Pinnacol Assurance fund show a credit balance and
after payment of all amounts that have fallen due because of operating expenses,
injury, or death, and after setting aside proper reserves, the board shall distribute
such credit balance to the policyholders who have a balance to their credit in
proportion to the premium paid and losses incurred by each such policyholder
during the preceding insurance period. In the event any such policyholder fails to
renew a policy with Pinnacol Assurance for the period following the period in which
said dividends were earned, said policyholder shall be entitled to said credit
dividend if such policy is terminated in good standing. In the event an employer
actually discontinues business, said employer's policy shall be canceled, and the
dividend, if any, when ascertained, shall be returned to the employer.

Legislative History

Source: L. 90: Entire article R&RE, p. 537, � 1, effective July 1. L. 2002: Entire section amended, p. 1873, � 11, effective July 1.