The R.I. Department of Business Regulation said last week that it has sent a draft of its report on The Beacon Mutual Insurance Co. to the company, and it’s giving Beacon until March 1 to review it and identify any factual errors.
The DBR has been reviewing Beacon’s practices and procedures since September 2005, when it began a “market conduct exam” of the workers’
compensation insurer.
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In February 2006, after an internal report commissioned by Beacon alleged favoritism and various improprieties, the DBR hired forensic auditors from Deloitte Financial Advisory to conduct a far more intensive review of the company.
The agency said it received all the necessary information in early May of last year. The review has been pending since then. In the meantime, Beacon officials have said, they have taken steps to correct any deficiencies of which they’re aware.
The DBR said that after any errors in the draft report are corrected, Beacon will get a final version have 30 days to respond. DBR will then review the response, and Director A. Michael Marques will formally accept or reject the report.
Until then, the DBR said, state law requires the report to remain “private and confidential,” and Beacon may ask to keep it confidential for yet another 30 days.
“This process will minimize disruption for both parties,” Marques said, “and will ensure the fair conclusion to what has admittedly been a costly and time-consuming process.”
