Industry Associations Ask Appeals Court to Affirm District Court Decision Upholding Risk Retention Group's Right to Operate
(firmenpresse) - SAN FRANCISCO, CA -- (Marketwire) -- 12/20/11 -- Four industry associations filed an amicus brief December 14 asking the federal Ninth Circuit Court of Appeals to uphold a decision by the Nevada District Court to allow a Risk Retention Group (RRG) to continue operating despite the State's effort to shut it down.
The National Risk Retention Association, Nevada Captive Insurance Association, Vermont Captive Insurance Association and Captive Insurance Companies Association jointly called upon the Circuit Court to uphold the lower court ruling that the federal Liability Risk Retention Act of 1986 (LRRA) preempts a cease and desist order by the State regulatory authority to deny the Alliance of Nonprofits for Insurance RRG (ANI) the right to issue first-dollar auto liability insurance without being licensed in the State.
"Simply stated, the District Court correctly found that the LRRA preempts Nevada laws that bar RRGs not chartered in Nevada from writing first-dollar liability auto insurance in the State of Nevada. The decision should be affirmed," wrote Robert H. Myers, Jr., NRRA General Counsel, who filed the brief on behalf of the four associations.
ANI has been issuing affordable commercial auto liability policies to non-profit organizations in Nevada since 2001. The Company is rated "A-Excellent" by A.M. Best. In September 2010, the Nevada Division of Insurance ordered ANI to stop writing insurance in the State because it was not an "authorized insurer" under State law. The lower court affirmed ANI's right to do business and ordered the State to recognize RRGs as "authorized insurers" under the authority granted by the federal law.
"Since the enactment of the LRRA, a growing number of non-chartering state regulators have attempted to contravene the legislation's plain language and Congressional intent by imposing procedures and requirements beyond their authorized regulatory powers. Such impositions, which violate federal law, have become more egregious and costly to RRGs over time and threaten to undermine the fundamental purpose of the LRRA -- to provide affordable, commercial liability insurance to municipalities, schools, professionals, directors and officers and non-profit organizations," the brief stated.
Amicus briefs supporting the lower court decision were filed also by United Educators Insurance, A Reciprocal Risk Retention Group, and the Housing Authority Risk Retention Group, two of the largest RRGs in the nation. The Vermont Department of Banking, Insurance, Securities and Health Care Administration, the nation's largest captive insurance regulator, also filed a brief asking the Circuit Court to affirm the decision in favor of ANI.
Media contact:
Mechlin Moore
NRRA Communications
239-777-1595
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Datum: 20.12.2011 - 19:48 Uhr
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News-ID 98896
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