Wadsworth v. Allied Professionals Insurance

GERARD E. LYNCH, Circuit Judge:

The federal Liability Risk Retention Act of 1986, 15 U.S.C. § 3901, et seq. (“the LRRA” or “the Act”), contains sweeping preemption language that sharply limits the authority of states to regulate, directly or indirectly, the operation of risk retention groups chartered in another state. Id. § 3902(a). A provision of New York’s insurance law requires that any insurance policy issued in that state contain a provision permitting, under certain circumstances, an injured party with an unsatisfied judgment to maintain a direct action against her tortfeasor’s insurer…