A spokesman for Rhode Island Gov. Donald L. Carcieri said yesterday the governor was pleased with the failure of a legislative effort to limit his ability to reform the state-sponsored workers' compensation insurer--scandal-scarred Beacon Mutual.

The governor "is pleased the House thwarted the Senate attempt to remove public oversight over Beacon," said administration spokesman Jeff Neal.

Gov. Carcieri, a Republican, had blasted the Democratic-controlled Senate earlier this month when it rushed through approval of several bills, including language to require Senate advice and consent for appointments to the Beacon board, and another he called a veiled attempt to enable existing board members to remain as directors after their appointments expire.

The activities of Beacon management and its board, currently under scrutiny by a grand jury, earlier this year prompted the governor to have the board fire the insurer's chief executive officer, Joseph Solomon, and David Clark, the vice president of underwriting. He also fired the several board members, and his pressure led another to resign.

The company has been undergoing a variety of inquiries since January, when a whistleblower blew the lid off a variety of questionable coverage arrangements involving businesses that had cozy relationships with Beacon management.

Although the state Senate passed two bills that would restrict his authority--which Gov. Carcieri labeled an "outrageous and unconstitutional attempt to stop the reforms being implemented at the state's largest workers' compensation insurer"--the legislature wrapped up its session last week with the House taking no action on either measure.

Special Reports /

Effort To Halt Beacon Reforms Fails In R.I.

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