Workers Comp Audit Stress Reducer
Use It For Your Next Premium Audit

Pinnacol – Different View – Colorado Agent Disagreed


Different View of Colorado’s Pinnacol

Colorado's different view opinion
Wikimedia Commons – Takver

I decided to publish a different view of Pinnacol.  One of my blog readers that is an agent in Colorado disagreed with what I had said about Pinnacol in one of my recent posts. The verbatim quote is in the next few paragraphs. I may or may not necessarily agree with everything, but it was well thought out and written.

Pinnacol has no plans of expanding outside the state of Colorado, which allows them to keep a federal tax exemption. They will also stay as the insurer of last resort. This portion of the business would be exempt from state premium tax. The premium tax on the remaining business is insignificant, 1%. That would translate to less than $4 million for the state based on Pinnacol’s current book.

Tax Form Different View Image

Pinnacol already has more than 50% of the Colorado WC market (that number fluctuates depending on the metric). This includes many of the best accounts in the state along with the business they have to write. They do have the ability to place other states coverage through a cut-through deal, currently with Argonaut (soon to be with Zurich).

I was confused by your statement that, “Cherry picking the good accounts that are just in Colorado would not enable Pinnacol to stay in business very long.” Pinnacol has been very successful in not only writing the very best the state has to offer, but also the risks that nobody else will touch.

Even though the discussion on Pinnacol may not directly apply to your state, I have posted on it many times as along with West Virginia, Nevada, Oklahoma, and other states the Workers Comp market is quickly changing overall. These and other states along with the health care debate should be looked at as bellwethers for your Workers Compensation situation.

©J&L Risk Management Inc Copyright Notice



James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management 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


Get the latest workers' comp news FREE!

This field is for validation purposes and should be left unchanged.