Wadsworth v. Allied Professionals Ins., No. 13-1163 (2d Cir. 2014)Annotate this Case
Plaintiff filed suit against APIC, a nondomiciliary risk retention group, under New York's direct action statute, N.Y. Ins. Law 3420, to recover an unsatisfied state court judgment that had been entered against APIC's insured. The insured was a chiropractor that plaintiff had sought treatment from and who had pled guilty to third-degree assault for his inappropriate touching of plaintiff. At issue was whether the Liability Risk Retention Act of 1986, 15 U.S.C. 3901 et seq., preempted the application of section 3420(a)(2) to APIC, which was domiciled in Arizona, but issued insurance policies in New York. The court held that any construction of New York law that would impose section 3420's direct action requirements on foreign risk retention groups was preempted by section 3902(a)(1) of the LRRA.