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Member, Beacon International Group, Ltd.
A U.S. appeals court is set to hear oral arguments next month in Nevada’s appeal of a lower court’s summary judgment favoring a Vermont-domiciled risk retention group that sued the state over efforts to bar the RRG from writing first-dollar automobile liability coverage in Nevada.
Oral arguments in the case involving the Alliance of Nonprofits for Insurance, Risk Retention Group and Nevada are set to begin Feb. 11 before the 9th U.S. Circuit Court of Appeals in San Francisco.
In seeking to block the RRG from writing first-dollar auto coverage in the state, Nevada officials had contended that the RRG’s members could write the coverage without participating in the state's guaranty fund only if they were self-insureds or if the RRG redomesticated to Nevada.
However, RRGs are prohibited from participating in guaranty funds under the U.S. Liability Risk Retention Act.
In his 2011 decision, U.S. District Court Judge James C. Mahan ruled that the federal law pre-empted the state’s efforts.