Pinnacol Assurance, the state’s workers’ compensation insurance company, is the subject of an independent hearing at the Division of Insurance this week.
The division claims that Pinnacol failed to show that its rates are not excessive, inadequate or unfairly discriminatory.
The hearing came on the heels of financial audits requested by the legislature in 2009. The company is a quasi-governmental agency that providers workers’ compensation insurance to more than 50 percent of the market, covering nearly 1.5 million workers.
According to the state, Pinnacol used some rating information that was not filed with the Division of Insurance, a violation of state law.
– The company does not use an actuary to assist in setting rates.
– Pinnacol’s Loss-Cost Multipliers may unfairly discriminate among employers, overcharge employers with policies in standard and non-standard tiers, relative to employers in preferred or superior tiers.
– The company also allegedly used inaccurate information to calculate rates.
The hearing is set for 9 a.m. Wednesday at the Old Supreme Court Chambers at the State Capital Building, room 220 in Denver. If necessary, it will continue on Thursday.