A judge in Rhode Island has granted class-action status to Plaintiffs in a case against Beacon Mutual Insurance Co. for inequitably distributing $101 million in dividends among policyholders. Judge Michael A. Silverstein said in his ruling that the focus of the suit is that Beacon Mutual is supposed to distribute surpluses among its policyholders, but that the company instead “engaged in a systematic scheme to divert over $101 million to a small percent of its policyholders.”
The suit was filed in 2002 and the order referred to above came last month. Beacon is the state’s dominant workers’ compensation issuer, with about 11,000 policy holders. There are six named Plaintiffs, all businesses, in the lawsuit. It was reported that the case will actually involve as many as 15,000 Plaintiffs as class members with similar interests. The firm of Adkins, Kelston and Zavez, located in Boston, represents the Plaintiffs in this case.
Source: Insurance Journal
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