PROVIDENCE – The R.I. Department of Business Regulation is working out a deal with The Beacon Mutual Insurance Co. to approve a new rate plan – with an expected average premium decrease of 27.7 percent – even while investigations of the company are pending.
In the last year and a half, the DBR has approved two updates to the National Council on Compensation Insurance’s rate guidelines that, combined, would cut premiums by 23.6 percent. Beacon has refused to adopt those guidelines, but in January, it filed its own rate plan, with a 27.7-percent rate cut and several changes said to benefit small businesses.
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Within days, however, Beacon was immersed in controversy over alleged improprieties in its rate setting. An audit commissioned by the company confirmed some of the allegations, and Beacon recently fired its CEO and vice president of underwriting. The DBR still has a probe pending, and a state grand jury is involved.
Nevertheless, because a new rate plan can only benefit policyholders, DBR is moving ahead, Director A. Michael Marques said. “It’s in the best interest of everybody in this state for us to reach an agreement before the examination is done,” he said.
