NU Online News Service, Sept. 7, 1:33 p.m. EDT
The National Risk Retention Association (NRRA) expressed dismay at the State of Nevada's appeal of a federal court's summary judgment in favor of a risk retention group.
After a year-long battle with Nevada regulators, the United States District Court for the District of Nevada in Las Vegas concluded that the Nevada Division of Insurance (NDI) overstepped its legal bounds by ordering the Alliance of Nonprofits for Insurance Risk Retention Group (ANI) to cease writing automobile-liability insurance policies for its nonprofit association members.
"It's very discouraging that Nevada would take this position," Robert H. Myers Jr., general counsel for the National Risk Retention Association (NRRA) and a partner with Morris, Manning & Martin LLP tells NU Online News Service. "We think their appeal is baseless. The judge is clear in his order. The precedent is very clear in the ninth-circuit, where Nevada is."
Myers adds that NRRA will "fight the appeal" and take whatever action is necessary.
A spokesman for the NDI says the department had no comment at this time.
In August, Myers explained that the case was generated by the Nevada Department of Motor Vehicles, which obtained "a list of 'authorized insurers' from the Department of Insurance."
Len Crouse, partner with the Towner Management Group, a member of the Government Affairs Committee of the NRRA and a former captive insurance regulator for Vermont, says in a statement, "Once again, we see an example why modernization of the federal Liability Risk Retention Act (LRRA) of 1986 is so important."
In early June, the U.S. House of Representatives introduced HR 2126, which was referred to the House Committee on Financial Services. The bill would modernize the LRRA '86, providing a federal dispute resolution mechanism for cases such as these, among other features.
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