3rd Cir. Upholds Dismissal of Risk Retention Group’s Lawsuit Against Insurance Dept.

PHILADELPHIA — A federal appeals court has upheld dismissal of a risk retention group’s lawsuit alleging that it was wrongfully barred from participating in a New Jersey fund that makes personal injury payments to uninsured pedestrians involved in motor vehicle accidents, holding that the group was not discriminated against.

In an Aug. 8 opinion, the 3rd Circuit U.S. Court of Appeals ruled that the federal Liability Risk Retention Act of 1986 does not require states to allow the participation of risk retention groups to participate in equitable apportionment mechanisms.

Under New Jersey law, pedestrians involved in motor vehicle accidents may …