Pinnacol Assurance

7501 E. Lowry Blvd.

Denver, CO 80230
Phone Number: 303.361.4777
FAX Line: 303.361.5777

For Immediate Release

Contact: Suzi Stolte
Associate Vice President, Communications and Public Relations
303.361.4777 (office)
303.406.3795 (mobile)
suzi.stolte@pinnacol.com

PINNACOL SAYS NO CHANGES NEEDED TO ITS STRUCTURE

Insurer will not offer proposals to Interim Legislative Committee

DENVER, September 16, 2009 – Pinnacol Assurance does not believe any retooling of state laws
regarding the workers’ compensation carrier is necessary, and it will not bring any new legislation to the
Interim Legislative Committee that is studying Pinnacol’s operations.

“We believe strongly that Pinnacol is not broken, so we’re saying don’t fix it,’” said Pinnacol President
and CEO Ken Ross. “We continue to assert that it is our responsibility to safeguard Colorado companies,
their employees, and Pinnacol’s assets, which belong to our policyholders. There’s no need for any
tinkering with the laws regarding Pinnacol’s assets, or its legal stature.”

Members of the General Assembly earlier this year attempted to raid Pinnacol’s surplus to make up for
the state’s large budget deficit, but were turned away when the Attorney General ruled that Pinnacol’s
money does not belong to the state.

Ross said he met with business community leaders today and heard strong support for leaving Pinnacol
in its current status, as the market leader and the “insurer of last resort,” providing workers’
compensation insurance to the hard-to-insure “residual market.” Ross said the business community
continues to be alarmed by the idea that Pinnacol’s assets are at risk, and that Pinnacol can be sold to the
highest bidder, a suggestion made at the last committee hearing.
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 Pinnacol Assurance
7501 E. Lowry Blvd.
Denver, CO 80230
Phone Number: 303.361.4777
FAX Line: 303.361.5777

For Immediate Release

Pinnacol Says No Changes Needed
Page Two

Members of the business community rallied last spring to stop the raid of Pinnacol’s surplus and they’ve
been supportive of Pinnacol during the hearings, which some have portrayed as a “witch hunt, and a
waste of time and taxpayer dollars.” Ross said he again reassured businesses that Pinnacol’s assets are
held in trust for policyholders, and cannot be taken by the state.

Ross said Pinnacol’s financial success benefits Colorado businesses, allowing the workers’ compensation
market to remain viable and stable—characteristics that create a competitive business environment.
Colorado has the seventh lowest workers’ compensation premiums in the nation. Pinnacol has reduced
its rates 42% in the past four years.

The Interim Committee is not required to suggest legislative changes, Ross pointed out, but the chair Sen.
Morgan Carroll (D-Aurora) has indicated she wants tighter restrictions imposed on Pinnacol. Of the 16-
member committee, only the 10 legislators (six Democrats, four Republicans) are allowed to vote on
proposed legislation for recommendation to both houses of the General Assembly.

“It’s been clear that our business model puts a top priority on stable rates, injured worker care, workplace
safety and operational efficiencies. Pinnacol’s success and business model were validated multiple times
in testimony heard by the interim committee during the first four meetings,” added Ross.

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 Pinnacol Assurance
7501 E. Lowry Blvd.
Denver, CO 80230
Phone Number: 303.361.4777
FAX Line: 303.361.5777

For Immediate Release

Pinnacol Says No Changes Needed
Page Three

About Pinnacol Assurance

Pinnacol Assurance is Colorado’s leading provider of workers’ compensation insurance. Pinnacol
provides comprehensive, competitively priced coverage; immediate attention to claims; a highly
qualified network of medical providers; and proactive safety programs to approximately 58,000 Colorado
businesses. Over the past five years, Pinnacol has returned $347 million in general dividends to its
policyholders statewide―a mark of the company’s stable and strong financial health.

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