Guaranty fund doesn’t cover ‘risk retention group’

Trial Notebook

By Steven P. Garmisa

Hoey & Farina

Posted May 14, 2020 11:27 AM

Seriously injured in an auto accident at 53rd and Western in Chicago, James D. Richardson settled his negligence claim against Night Dream Inc. and Shaun T. Small for $1 million, but their Nevada-based insurer — Spirit Commercial Auto RRG Inc. — was placed in liquidation before it funded the settlement. And because Spirit was a “risk retention group,” Richardson couldn’t collect from the insurance guaranty funds in Nevada or Illinois. So Richardson asked for a $1 million judgment against Night …

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