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April 13, 2006

Carcieri demands Beacon fire its president

PROVIDENCE -- Governor Carcieri today demanded that the Board of Directors of Beacon Mutual Insurance fire its president and chief executive officer, Joseph A. Solomon.

The governor's call comes one day after a review found instances of "abuse, misjudgment and seriously flawed operating systems" within the company created by the state legislature in the early 1990s to provide insurance at the "lowest possible price" to the state's businesses for the care of sick or injured workers.

Carcieri also called for the termination of Beacon's vice president for underwriting, David Clark, and said that board members who have presided over the alleged mismanagement since 1994 should resign.

"Whether or not these directors were aware of the abuse and mismanagement detailed in the Almond Ad Hoc Committee report is irrelevant. As directors for over a decade, they were either complicit in the abuse or they were incompetent in not stopping it," the governor charged in a letter to the board released today.

The governor also said that any board members "who are personally implicated or who represent policy holders implicated in any of the abuse" detailed in the report must resign.

Carcieri says he plans to name new gubernatorial board members.

Posted by Andrea Panciera  at 4:20 PM | Permalink

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