Rhode Island’s largest workers’ compensation insurer is apologizing to more than 14,000 policyholders eight months after an audit found that Beacon Mutual Insurance Co. gave improper breaks to preferred clients.
“There is no question that in the past mistakes were made,” wrote Clifford Parent, the company’s interim chief executive officer, in a Sept. 12 letter. “Reforms are being implemented to ensure a greater level of transparency and equity for all our policyholders.”
The letter comes shortly after forensic auditors hired by the state reviewed the company’s books and just before about 9 percent of policyholders must decide whether to renew their contracts.
“There is no correlation; it simply was a good time to inform our policyholders, give them an update,” company spokesman Bill Fischer said.
A company-funded audit in April revealed that Beacon gave improper discounts to several large companies and maintained inappropriate relationships with some insurance agents. The findings prompted the board to fire former CEO Joseph Solomon and the resignation of three board members.
Was this article valuable?
Here are more articles you may enjoy.
Intersecting Risks and the Future of Construction Insurance 
NAIC Victim of Cyber Incident Via PeopleSoft System 
North Carolina Becomes First State to Pass Outright Ban on Litigation Financing 
Need Wind Mitigation? New Florida Insurer Wants to Help With That 
