(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.
(b) The members of the board who were serving as of January 1, 2002, shall
continue to serve until the completion of each member's term. New members of the
board shall be appointed pursuant to paragraph (a) of this subsection (2).
(c) The board shall have the powers, rights, and duties as set forth in this
article and otherwise provided by law.
(3) Members of the board shall be compensated one hundred forty dollars
per diem plus their 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.
(4) On and after July 1, 2002, the powers, duties, and functions formerly
exercised by the Colorado compensation insurance authority may be exercised by
Pinnacol Assurance.
(5) 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.
(b) Develop and approve an annual budget;
(c) Establish general policies and procedures for the operation and
administration of Pinnacol Assurance;
(d) (Deleted by amendment, L. 2002, p. 1865, � 1, effective July 1, 2002.)
(e) 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.
(f) Offer to provide workers' compensation insurance and employer's liability
insurance covering 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.
(g) Review and streamline administrative procedures;
(h) Oversee the operations and make necessary personnel changes;
(i) Review the investigative procedures and implement changes to expedite
investigations;
(j) Review and recommend legislation pertaining to workers' compensation in
articles 40 to 47 of this title and to clarify legal concepts related thereto;
(k) Review the method of calculation of the experience modification factor
with the object of providing maximum incentives for job safety;
(l) Establish general policies and procedures by rule and regulation
concerning medical care cost containment practices under articles 40 to 47 of this
title; and
(m) Post the date, time, and location of each board meeting on the Pinnacol
Assurance website at least seven calendar days prior to the scheduled meeting.
(6) Article 4 of title 24, C.R.S., shall not apply to the promulgation of any
policies or procedures authorized by subsection (5) of this section.
(7) Pinnacol Assurance may sell services, including but not limited to
medical bill processing, that are developed pursuant to its powers under this
article.
(8) Employees of Pinnacol Assurance shall be exempt from the state
personnel system but 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.
(9) 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.
(10) With respect to meetings of Pinnacol Assurance, matters relating to the
claim files of 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.
(11) Pinnacol Assurance may enter into cooperative arrangements with any
public or private 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.
(12) 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.
(13) Any member of the board who owns at least ten percent of an entity that
enters into a contract with Pinnacol Assurance shall disclose the board member's
ownership interest in the entity. This disclosure shall be a public record.