Self insured employers may recover from NIGA.
In MGM Mirage v. Nevada Ins. Guaranty Ass’n, The Nevada Supreme Court held that self-insured employers can seek reimbursement from the Nevada Insurance Guaranty Association (NIGA) for amounts that should have been paid by an insolvent excess insurance carrier. NIGA pays out insurance benefits to individuals and entities whose insurers have become insolvent., but not to insurers. NIGA had argued that because self-insured employers are treated as insurers under the workers compensation laws, NIGA had no obligation to pay out funds for excess insurance that the self-insured employers would have recovered from the insolvent excess carrier. The Court held that self-insured employers do not fall into the category of “insurer” for NIGA’s purposes, as they are not engaged in the business of insurance.
The 7-0 decision, issued June 26, 2009, was authored by Hardesty.
