Colorado Governor Wants to Convert Pinnacol Assurance as Part of Budget Plan

• Colorado Governor Jared Polis is reportedly seeking to convert Pinnacol Assurance, the state-chartered workers’ compensation insurer of last resort, into an independently operated mutual insurance company.
• The move is part of his budget-balancing proposal as the state expects a deficit of more than $600 million.
• Pinnacol provides workers’ comp policies to more than 50,000 Colorado companies.
• Its market share has declined in recent years from a level once estimated at 56% of all businesses in the state.
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Florida Contractor Gets Federal Prison Stint for WC Fraud

• An Orlando construction contractor, Wendy Cudemo was sentenced to 27 months in federal prison for conspiracy to commit wire fraud and skirt Florida’s law requiring that her company secure and maintain adequate worker’s compensation insurance coverage. 
• Among her illegal activities, she falsely and fraudulently represented that her company’s employees had full worker’s compensation coverage.
• Her company had agreements with contractors and subcontractors to use workers purported to be Cudemo’s employees at construction sites and these workers were often undocumented aliens who were actually working for and under the daily supervision and direction of the contractors.
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