STORY FROM: Reinsurance & Arbitration

Conn. Federal Judge Remands Lawsuit Against Risk Retention Group

HARTFORD, Conn. — A Connecticut federal judge has remanded a lawsuit against a risk retention group, ruling that the complaint does not raise federal law questions, and diversity jurisdiction exists because the defendant is an “insurance company” that assumed the citizenship of its insured.

On May 21, Judge Janet Hall of the U.S. District Court for the District of Connecticut further held that the federal act governing risk retention groups does not preempt Connecticut law because the act does not create a private right of action for third parties.

KeyBank National Association initiated an action against American Safety Risk Retention ...

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