Risk retention group wins round in first-dollar auto liability coverage suit

LAS VEGAS—A Vermont-domiciled risk retention group has won summary judgment in its case against Nevada regulators who sought to bar the RRG from writing first-dollar automobile liability coverage in the state.

In a Las Vegas hearing, U.S. District Court Judge James C. Mahan ruled Thursday in favor of the Alliance of Nonprofits for Insurance, Risk Retention Group.

Robert H. Myers Jr., general counsel for the National Risk Retention Assn. and a partner in the insurance group at Morris, Manning & Martin L.L.P. in Washington, said Nevada officials had contended that ANI RRG members could write first-dollar auto coverage in the state without participating in the state's guaranty fund only if they were self-insureds or if the RRG redomesticated to Nevada.

RRGs are prohibited from participating in guaranty funds under the federal Liability Risk Retention Act.

Victory for RRGs

“The state argued that vigorously and the judge, to his great credit, didn't buy it,” Mr. Myers said. The NRRA filed an amicus brief in support of the ANI RRG in the case, and the ruling in the case was “a great victory for RRGs,” Mr. Myers said.