R.I.’s Beacon Review to be Headed by Former N.Y. City Mayor Giuilani’s Firm

February 16, 2006

Former Rhode Island Governor Lincoln C. Almond, who heads a review committee named by The Beacon Mutual Insurance Company, announced that Giuliani Safety & Security, a management consulting firm headed by former New York Mayor Rudolph Giuliani, will lead an examination of Beacon’s corporate practices, including those related to pricing policies.

Beacon Mutual asked Almond to head an external committee to review its practices in light of allegations made on its hotline about preferential pricing for certain firms and other questions raised by critics of the state’s dominant workers compensation carrier.

Gov. Don Carcieri has used the allegations in his high-profile campaign to block changes in the insurer’s corporate structure and regulatory status.

The Almond committee also includes Lieutenant General (Retired) Reginald A. Centracchio of the Rhode Island National Guard and Edward M. Mazze, dean of the College of Business Administration, University of Rhode Island, who also holds the Alfred J. Verrecchia – Hasbro, Inc. Leadership Chair in Business. The panel will report its findings directly to the public.

Giuliani Security & Safety, which conducts corporate reviews, will also create a separate, independent hotline to enable policyholders to voice concerns and share information. That number will be made public soon.

The Giuliani group will have full access to Beacon’s records and personnel to conduct its review and make recommendations if necessary, according to a spokesman.

A spokesman for Beacon said the company hopes the review can be completed within 60 days. No information on the price of the Giuliani contract is yet available.

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