The question of whether a nonchartering state has the authority to issue a unilateral cease-and-desist order against a risk retention group licensed by another state was recently answered by the California U.S. District Court.
The U.S. District Court, Eastern District of California, ruled on March 7, enjoining California's insurance commissioner from taking any action to enforce its cease-and-desist order issued against a Montana-domiciled risk retention group, and from issuing any other orders or decrees concerning the RRG in question.
In the order issued by Judge Frank C. Damrell Jr., the court found "serious questions raised, regarding whether the [California] commissioner had the authority to issue the cease-and-desist order at issue in this motion."
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
