HOUSE COMMITTEE ON APPROPRIATIONS
|Votes: View--> ||Action Taken: |
07:37 AM -- Senate Bill 09-281
Representative Weissmann presents his bill. Presented a letter from Pinnacol that stated that Pinnacol will not be forced into a deal. Weissman clarified that he is not here to try and make a deal, but here to present his bill and the requirements of the bill. Going over the four components of the bill, and acknowledged that the bill is a joint effort between Rep. Weissmann and Senator Shaffer. Notes that the Executive Committee will only pick 3 interim committees, and highly likely that this interim committee will be the one for Pinnacol partly because of the the number of sponsors who are on the Executive Committee. Going over what the purpose of what the interim committee would be.
Committee members are asking questions of Representative Weismann.
Chair establishes that each side for the two Pinnacol bills will have 20 minutes to present/argue their side.
*Mark Larsen is first to speak - former board member of CCIA/former legislator. - 7:55am
*Marcia Benshoof & Rob Norris - Pinnacol Representatives - 8:00am
Getting hard questions - building owned at Lowery, newspaper ad, t-shirts people were wearing, asked if they organized the campaign - newspaper, t-shirts paid out of surplus. Answering questions about how the surplus got so large so quick - 14 year plan on recorded with the Division of Insurance (Department of Regulatory Agencies).
Trying to tie themselves to AIG (i.e. if take the money won't have enough reserves) and also trying to separate themselves (AIG can pick who they want, but we (Pinnacol) can't).
Represenatives explaining how claims are counter-cycial to economic health - Frequency of claims go down because there is less people working, but owner/operates take over work and increase the chance for more claims/more expensive claims, which Pinnacol is seeing.
Gardner - why do insurance companies keep large amount of money in the bank? Pinnacol - surplus is a bumper agaisnt any major problems.
Pinnacol - stated that the following are not factored in to calculation of reserves- unforeseen circumstances, changes in law
Gardner asked who owns reserve - "Pinnacol Assurance owns it, and holds it in trust for you and 58,000 of your peers" by Marcia Benshoof - Rob - "sort of holding it in trust for you"
dividend based on loss experience - dividend based on company size is contrary to the current way the Pinnacol writes dividends - claims it will be seen as discriminatory
Representative Weismann is clarifiying that the bill 09-281 is not selling Pinnacol and the interim committee is not solely designed to determine how to sell Pinnacol, but to look at the best operating method for Pinnacol, private or public.- Pinnacol completed testimony - 9:05am
*Steve Durham - Denver Metro Chamber of Commerce - Colorado Concerned - 9:05 am, want mandatory dividend removed, and do not want a mandatory rate control
*Rick Van Dkye - President Resource Management Systems Incorporated - operated solely in Colorado - one of Pinnacol's larger clients - $4.5 million in Pinnacol premiums - voicing against reduction of RESERVES not SURPLUS - 9:25am
*Tony Galigardi - NFIB - 9:27am
Testimony ended agaisnt the bill 10:03am.
Break until 10:13am.
Back to order - 10:15am
*Arthur Powers - THRIVE - managing director - 10:15am - 10:22am
*Ben Kramer - 10:22am - Attnory for workers' compensation claims
*Mark Simon - 10:51am - workers' compensation injuried claimant - 10:56am
Concludes public testimony at 10:56am.
|TIME: || 10:59:11 AM|
Final YES: 9 NO: 3 EXC: 1 ABS: 0 FINAL ACTION: PASS