Colo. House panel approves takeover of insurer

 

Thursday, Apr 16,2009, 3:01:19 PM   Click:

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DENVER_A Colorado House committee gave its approval to a bill to take over a state created by the insurance of workers' compensation to balance the budget next year.

Legislators hope to use a portion of Pinnacol Assurance reserves to avoid cuts in higher education.

The Legislature is looking for dollars amid a sharp drop in tax revenue because of the recession.

The bill approved Tuesday by the House Appropriations Committee changes the structure of Pinnacol and takes control of its money from its Board of Directors.

Rep. Paul Weissmann, D-Louisville, who sponsored the bill, said he wanted to highlight the state has the same control of the insurance company had in 1991, legislation was introduced before that the company has given more power over the regulation and finance. He said he opposes any negotiation with the company that has more control.

"Let me say very clearly. I have no interest in a case," said Weissmann.


Former state Rep. Mark Larson, who is also a former board member Pinnacol, said the company is liable to balance its books and the company in court to protect its members.

"You do not see that money," Larson told the committee.

Rep. Don Marostica, R-Loveland, questioned the high salaries and bonuses paid to executives Pinnacol, and the company's decision to build a new headquarters for $ 25 million.

"They were taking your money," Marostica said Tony Gagliardi, Colorado director of the National Federation of Independent Business, 7500, representing small businesses across the state.

Gagliardi said he does not believe that companies have been misled.

According to a report filed by the State with Pinnacol Insurance Division, Chief Executive Officer Kenneth Ross was paid $ 297,500 and a bonus of $ 131,545 for total compensation of about $ 450,000 last year. Six vice-presidents received bonuses ranging from $ 28,000 to $ 190,000.

Legislators will consider a separate bill that would take $ 500 million surplus Pinnacol to reverse cuts to higher education.