Pinnacol pledges to review travel policies after furor over golf trip
By Jessica Fender
The Denver Post
05/28/2010
http://www.denverpost.com/ci_15178796The state-chartered workers' compensation insurer, Pinnacol Assurance, on Wednesday promised to re-evaluate its travel policies after 7News revealed board members recently took a lavish trip to Pebble Beach, Calif., on the firm's dime.
Denver's KMGH-TV found that three board members, Pinnacol chief executive Ken Ross and 10 of the company's top performers traveled to California for a five-day wine-and-golf getaway.
The revelation prompted a bipartisan cadre of lawmakers to seek the resignations of Ross and the traveling board members.
Gov. Bill Ritter said Thursday that he's "disappointed" in the insurer's behavior, but he declined to say whether he thought Pinnacol leaders should step aside.
"They've been in the vortex of a very heated debate. To travel to Pebble Beach to spend the kind of Pinnacol dollars they did is something that demonstrates poor judgment," Ritter said.
Though the governor appoints the insurer's oversight board, he does not have the power to dismiss members.
Calls to Pinnacol board chairman Gary Johnson and board member Debra Lovejoy, who went on the trip, were not returned. The third, Ryan Hettich, declined to discuss the trip.
"Although agent recognition events are standard in the insurance industry and are employed by the companies Pinnacol competes with in the Colorado marketplace, we will reevaluate with the board such recognition practices to ensure they conform to the highest professional standards," Ross said in a statement released Thursday.
Ross also apologized for his aggressive behavior toward 7News reporter Tony Kovaleski, to whom he said, "You point your finger at me again, and I'm going to break it," when a news crew approached Pinnacol leaders on the Pebble Beach golf course.
State Sen. Scott Renfroe, R-Greeley, said he understands that top employees should be rewarded, but he questioned why board members traveled to Pebble Beach as well.
House Rep. Sal Pace, D-Pueblo, wants Ross' resignation, citing his behavior toward Kovaleski, a history of lavish spending by Pinnacol and Ross' refusal to release records detailing the cost of the Pebble Beach excursion.
The case is now in court, where Pinnacol attorneys have argued the information is proprietary.
"It's insulting to Coloradans' intelligence to claim that a golf trip constitutes 'trade secrets,' " Pace said. "Does Ken Ross have a 9-iron that helps Pinnacol stay competitive in the workers' comp market?"
Pinnacol was established by state statute to serve as Colorado's insurer of last resort. It enjoys a series of tax breaks as a quasi-public entity.
Backed by Ritter's office, Pinnacol offered the state $330 million this year in exchange for a greater degree of autonomy, but Senate leaders refused to consider the idea.
Pinnacol also came under state scrutiny in 2009 when lawmakers considered tapping $500 million of the insurer's then-$700 million surplus to balance Colorado's budget.
Legislators abandoned that plan but formed a special committee to examine the insurer's business practices, including the expenses of its executives and board members. A state audit of Pinnacol is due to be released June 7.
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