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Colorado – Pinnacol Is Willing To Pay How Much For What?

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Colorado – Pinnacol Is Willing To Pay

Recently, I posted an article on Colorado’s Workers Comp carrier Pinnacol offering a staggering figure ($200 million) for autonomy. I had thought that Colorado would take the $ as the Colorado Legislature’s raiding of the company’s surplus to the tune of $500 million was considered illegal. After all, Pinnacol would immediately have to start paying taxes if they were given their independence from the state. 

Holding colorado money
Wikimedia Commons – Milad Mosapoor

Pinncaol may actually take a lead from West Virginia’s Brickstreet and expand into other states very quickly. Cherry picking the good accounts that are just in Colorado would not enable Pinnacol to stay in business very long. One has to wonder why Oklahoma’s CompSource did not attempt to make such an offer to the Oklahoma Legislature.

The story does not end here. Pinnacol has just offered the State of Colorado $330 million for autonomy. Pinnacol might have taken negotiation lessons from their adjusters. Why make an increased offer of 65% over the initial offer? This is a case of very poor negotiation.

I am wondering what caused the enormous increase. There was a recent valuation of Pinnacol which set the company worth at $370 million. The next offer by Pinncaol should follow an offer from the Legislature. As any Workers Compensation adjuster will tell you, do not make another offer without receiving a monetary response from the other party.

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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

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