Nevada Commissioner of Insurance Barbara Richardson in her capacity as the Receiver for Spirit Commercial Auto Risk Retention Group, Inc. (Spirit) has filed a Petition for Writ of Mandamus (the Writ) with the Supreme Court of the State of Nevada (Supreme Court) regarding a ruling by Nevada District Court, Clark County (District Court) that stayed all proceedings in the liquidation of Spirit pending arbitration. The Receiver claims that Spirit is owed more than $40 million by its former program administrator and managing general agent CTC Transportation (CTC).
The Writ, in which Risk Retention Reporter Managing Editor Christopher Diemel is cited as an Other Authority for the February 2019 Article “Management and Regulators Contribute to Spirit Commercial RRG’s Mounting Troubles,” claims that the District Court ruling left Commissioner Richardson in her capacity as Spirit’s Receiver “without a remedy, and thus, unable to fulfill her statutory duty of marshalling the assets of Spirit for the benefit of Spirit’s policyholders and other creditors of the failed insurer.”
This is an excerpt, for the complete article subscribe to the Risk Retention Reporter. For more information on the conditions that led to Spirit’s insolvency, see the reprint of our February 2019 article “Management and Regulators Contribute to Spirit Commercial RRG’s Mounting Troubles.”