Judge Rules ANI Can Resume Selling Auto Insurance to Nevada Groups
Nevada regulators had banned the Alliance of Nonprofits for Insurance from insuring charitable groups in the state.
(EMAILWIRE.COM, August 03, 2011 ) The Alliance of Nonprofits for Insurance (ANI) is heralding a federal judge’s ruling that allows the risk retention group to resume issuing commercial policies for low cost car insurance to charitable groups in Nevada.
U.S. District Court Judge James Mahan ruled earlier last month that the Nevada Division of Insurance (NID) overstepped its bounds in September 2010, when it ordered ANI to cease writing “first-dollar” policies—which pay up to the full coverage amount without requiring policyholders to pay a deductible.
Nevada regulators had not barred the alliance from providing coverage above the state minimums.
But ANI, which had been operating in Nevada since 2001, said the order would have forced its member organizations—which include homeless shelters and other charities that use ANI-insured vehicles in their daily business—to pay more for coverage from for-profit carriers.
“We objected to the order because it was illegal,” Pamela Davis, ANI’s founder and chief executive officer, said in a phone interview.
“It seems to us kind of a waste of public funds to try to stop an organization (that) is providing needed coverage.”
Mahan declared in his ruling that the Liability Risk Retention Act of 1986—a federal law authorizing risk retention groups chartered in one state to operate nationwide—preempts state law prohibiting them from providing some types of coverage.
A risk retention group is a group of similar businesses that forms a company to insure itself against risks.
Source: http://www.gao.gov/new.items/d05536.pdf
Mahan ordered state officials to recognize ANI and other risk retention groups as authorized insurers.
Officials with the National Risk Retention Association (NRRA) said the decision could have far-reaching implications for the more than 250 such groups writing policies nationwide.
“This ruling strongly affirms the authority of risk retention groups to operate free of most state regulation,” Brian Braley, NRRA president, said in a statement.
Braley said the association is supporting federal legislation that would relieve risk retention groups of the need to engage in costly lawsuits against state regulators nationwide in order to do business.
ANI officials are pleased the legal issue has been resolved, Davis said.
“All we want to do is go forward and serve nonprofits in the state of Nevada,” she said.
To read more about this and other car insurance issues, go to http://www.onlineautoinsurance.com/low-cost/ where you will find informative resource pages and a free-to-use quote-comparison generator.
U.S. District Court Judge James Mahan ruled earlier last month that the Nevada Division of Insurance (NID) overstepped its bounds in September 2010, when it ordered ANI to cease writing “first-dollar” policies—which pay up to the full coverage amount without requiring policyholders to pay a deductible.
Nevada regulators had not barred the alliance from providing coverage above the state minimums.
But ANI, which had been operating in Nevada since 2001, said the order would have forced its member organizations—which include homeless shelters and other charities that use ANI-insured vehicles in their daily business—to pay more for coverage from for-profit carriers.
“We objected to the order because it was illegal,” Pamela Davis, ANI’s founder and chief executive officer, said in a phone interview.
“It seems to us kind of a waste of public funds to try to stop an organization (that) is providing needed coverage.”
Mahan declared in his ruling that the Liability Risk Retention Act of 1986—a federal law authorizing risk retention groups chartered in one state to operate nationwide—preempts state law prohibiting them from providing some types of coverage.
A risk retention group is a group of similar businesses that forms a company to insure itself against risks.
Source: http://www.gao.gov/new.items/d05536.pdf
Mahan ordered state officials to recognize ANI and other risk retention groups as authorized insurers.
Officials with the National Risk Retention Association (NRRA) said the decision could have far-reaching implications for the more than 250 such groups writing policies nationwide.
“This ruling strongly affirms the authority of risk retention groups to operate free of most state regulation,” Brian Braley, NRRA president, said in a statement.
Braley said the association is supporting federal legislation that would relieve risk retention groups of the need to engage in costly lawsuits against state regulators nationwide in order to do business.
ANI officials are pleased the legal issue has been resolved, Davis said.
“All we want to do is go forward and serve nonprofits in the state of Nevada,” she said.
To read more about this and other car insurance issues, go to http://www.onlineautoinsurance.com/low-cost/ where you will find informative resource pages and a free-to-use quote-comparison generator.
Contact Information:
Online Auto Insurance, LLC
Gregor McGavin
Tel: 909-784-2476
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
Online Auto Insurance, LLC
Gregor McGavin
Tel: 909-784-2476
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
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