Risk retention group hails Nebraska high court ruling on arbitration
Reprints
The National Risk Retention Association hailed on Thursday a recent Nebraska Supreme Court decision that ruled in favor of arbitration provisions used by risk retention groups.
Last week, the court ruled that a Nebraska state law which prohibits arbitration provisions in insurance policies is preempted by the Liability Risk Retention Act.
Speaking this week at the association’s annual conference in Chicago, NRRA Executive Director Joseph Deems said the case sets an important precedent “that reinforces the preemption provisions of the LRRA in cases that involve state statutes and is one more in a series of court decisions upholding the right of risk retention groups to operate free of most regulation in all 50 states when licensed in a single state.”
The case began when a district judge ruled in favor of a chiropractor who sued Allied Professionals Insurance Company, a Risk Retention Group Inc., claiming that an arbitration provision in the Allied policy was illegal under state law.
Allied Chairman Michael Schroeder said the Nebraska Supreme Court ruling follows decisions in similar cases by federal circuit courts of appeal in the 2nd and 11th Circuits.
“I am very pleased by this sweeping ruling in favor of the risk retention industry on the preemption of state laws regulating risk retention groups,” Mr. Schroeder said in a statement.
Read Next
-
Industry welcomes bills to clarify NRRA's application to captive insurers
BURLINGTON, Vt. — The president of the Vermont Captive Insurance Association is “cautiously optimistic” about the chances for bills in Congress aimed at clarifying the federal Non-Admitted Reinsurance Reform Act as it relates to captive insurance.
Related Stories
-
Industry welcomes bills to clarify NRRA's application to captive insurers
-
NRRA posthumously honors first Vermont captive director with visionary award
-
Q&A: Brady R. Kelley, National Association of Professional Surplus Lines Offices Ltd.
