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June 22, 2006

Update: Bill gives Senate OK over Beacon gubernatorial appointees

PROVIDENCE – A bill requiring Senate approval of gubernatorial appointees to the board of the Beacon Mutual Insurance Company is scheduled for a hearing before the Senate Committee on Labor today.

The bill, sponsored by Sen. Roger Badeau, D-Woonsocket, comes at a time when Governor Carcieri is engaged in a court battle with two board members, George Nee and Henry Boeniger, over his right to remove them from the board. Both had been appointed by former Gov. Lincoln Almond.

In April, an independent report on Beacon by a team led by Almond turned up evidence that the insurer, among other things, gave preferential insurance rates to some large companies and maintained "inappropriate relationships" with certain insurance agents.

The governor has accused Nee and Boeniger of presiding over the mismanagement of Beacon for more than a decade.

Beacon spokesman Bill Fischer said the bill – which was posted last night for hearing -- was not a Beacon bill and that he does not know where it came from.

In a press release this afternoon, Governor Carcieri denounced the bill, saying it contained two specific flaws.

-- With reports from Journal staff writer Lynn Arditi

Posted by Andrea Panciera  at 4:58 PM | Permalink

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