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Nev. to appeal auto liability ruling in favor of risk retention group


SAN FRANCISCO—The state of Nevada has filed a notice of appeal of a federal court's summary judgment order favoring a Vermont-domiciled risk retention group that sued Nevada over the state's attempt to bar the RRG from writing first-dollar automobile liability coverage in Nevada.

A spokesman for the Nevada attorney general's office said the state filed its notice of appeal in late July and plans to file its brief in early November in the 9th U.S. Circuit Court of Appeals in San Francisco in its appeal of the ruling favoring the Alliance of Nonprofits for Insurance, Risk Retention Group.

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 July decision, U.S. District Court Judge James C. Mahan ruled that the federal law pre-empted the state's efforts. He also ruled that the RRG was entitled to recover its attorney fees from the state.

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