Nevada Insurance Guaranty Ass'n v. Sierra Auto Center

OPINION

THE FACTS

On March 16, 1985, an employee of respondent Sierra Auto Center (“Sierra”), while driving a Sierra-owned automobile, struck and killed a pedestrian, Douglas J. Fellom (“Fellom”). Fellom’s heir filed suit against Sierra and the employee.

Mission Insurance Company (“Mission”) insured Sierra. Mission defended Sierra and the employee in the action. On February 24, 1987, Mission was declared insolvent. Mission’s insolvency triggered the Nevada Insurance Guaranty Association Act (“the Act”). Under the Act, appellant Nevada Insurance Guaranty Association (“NIGA”), a non-profit…