DENVER — Thursday, Jan. 26, 2012 — A draft report to the Stakeholders’ Task Force about the potential restructuring of Pinnacol Assurance includes a recommendation from Gov. John Hickenlooper to move the proposal forward by seeking policyholder approval and beginning legislative discussions.
The restructuring proposal, which was given by Pinnacol to the governor on Nov. 3, would establish a more competitive “level playing field” for workers’ compensation insurance in Colorado and provide substantial resources for statewide economic development, education and injured worker programs.
“On balance, and after extensive review by the technical team and input from the Task Force, the Governor believes that the benefits of the proposed restructuring more than outweigh the risks for both policyholders and the public,” the draft report to the Task Force says. “In addition, because the restructuring is subject to approval by the legislature and Pinnacol’s policyholders, the Governor is comfortable recommending that the restructuring proceed into the legislative process.”
The Task Force was convened by the governor to offer advice on Pinnacol’s restructuring proposal. The full Task Force met three times to discuss the risks and benefits to the various stakeholders of Pinnacol’s proposed restructuring, and individual Task Force met with legal and financial advisors retained to evaluate the proposal.
The Task Force will meet again on Tuesday morning.
“The Task Force has played a very important role in helping the Governor’s Office identify and shape consideration of a wide array of issues related to Pinnacol’s proposal,” the draft report says. “While we expect that individual Task Force members will have their own valuable perspective on the Governor’s recommendations, the Governor deeply appreciates the ‘sounding board’ role of the Task Force to date.”
The governor’s recommendation includes changes from the proposal he received from Pinnacol in November. The key differences are:
The proposed restructuring is contingent upon several factors, including adoption of enabling legislation from the Colorado General Assembly, approval by Pinnacol’s Board of Directors and approval by Pinnacol’s policyholders.
Click here to read the complete draft report to the Pinnacol Stakeholders’ Task Force.