A spokesperson for Beacon Insurance said today that the RhodeIsland workers' compensation insurer is “cooperating fully” with agrand jury investigation into the non-profit company'soperations.

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The company has been undergoing a variety of inquiries sinceJanuary when a whistleblower blew the lid off a variety ofquestionable coverage arrangements involving businesses that hadcozy relationships with Beacon management.

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After what he termed “abuses” surfaced, Gov. Donald Carcieri gotthe company board to fire the insurer's chief executive officerJoseph Solomon and David Clark vice president of underwriting.

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In addition he said he was firing board members George Nee andHenry Boeniger earlier board member Edward Braks resigned.

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Bill Fischer, a spokesperson for the board, said it appearedthat Mr. Nee and Boeniger were keeping their options open as towhether they would appeal the governor's action. Gov. Carcieri hasyet to name replacements for the two.

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Mr. Fischer said the records sought by the State AttorneyGeneral's Office involved records that the board gave to theGiuliani Security & Safety firm, which help prepare a criticalreport on the insurer, which was released April 10.

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Mr. Fischer said Beacon was ready to provide the material thatwas subpoenaed, “the door is wide open. Beacon board management andemployees intend on cooperating fully there is nothing tohide.”

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He said the requested data is currently being compiled and itmay take some time because “we want to make sure we give anaccurate accounting.”

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Richard Berstein, executive counsel for the Rhode IslandDepartment of Business Regulation, said that his agency meanwhilecontinues an ongoing market conduct exam of the insurer as well asa forensic audit.

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He said the Beacon board after earlier blocking the DBR in courthas now directed its attorneys to arrange for the transfer ofBeacon employee computer hard drive records that were requested byforensic auditors.

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