DBR issues draft report on Beacon Mutual

'I AM COMMITTED to responding to DBR's findings in a cooperative manner on behalf of Beacon's 14,000 policyholders,' said James V. Rosati, the insurer's new president and CEO. /
'I AM COMMITTED to responding to DBR's findings in a cooperative manner on behalf of Beacon's 14,000 policyholders,' said James V. Rosati, the insurer's new president and CEO. /

The Beacon Mutual Insurance Co. yesterday confirmed it has received a draft of the R.I. Department of Business Regulation’s report on the company. The DBR is giving the company until March 1 to review the draft and identify any factual errors.

“We have assembled a team of board members and senior managers to respond to the report in an open and substantive manner. I am committed to responding to DBR’s findings in a cooperative manner on behalf of Beacon’s 14,000 policyholders,” said James V. Rosati, the insurer’s president and CEO, who called restoring relations with the DBR “one of my primary goals as Beacon’s new CEO.”

After the draft is corrected, the DBR said, Beacon will get a final version and will have 30 days to respond. The DBR will then review its response, and Director A. Michael Marques will formally accept or reject the report. Until then, the DBR said, state law requires that the report remain “private and confidential.”

“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.”

- Advertisement -

The department has been reviewing the workers’ compensation insurer’s practices and procedures since September 2005. 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 more intensive review.

Meanwhile, Beacon officials have said, the company acted to correct any deficiencies of which it was aware.

No posts to display