Greenfield

This case concerns the scope of federal preemption of state laws regulating a type of liability insurer known as a risk retention group (“RRG”). The federal government has preempted most state regulation of RRGs under the Product Liability Risk Retention Act of 1981 (“PLRRA”), as amended by the Liability Risk Retention Act of 1986 (“LRRA”). 15 U.S.C. §§ 3901-3906 . Under the Oregon Service Contract Act, the state of Oregon prohibits all RRGs from selling reimbursement insurance policies to automobile dealers to cover their liability on motor vehicle service contracts. Or.Rev.Stat. § 646.267(5)(b). We must decide whether the LRRA preempts the Oregon Service Contract Act.

Plaintiff-appellee National Warranty Insurance Company (“NWIC”) filed suit against defendant-appellant Mike Greenfield, Director of the Oregon Department of Consumer and Business Affairs, seeking a declaratory judgment either that the Service Contract Act is preempted by the LRRA, or that, in order to avoid preemption, the phrase “authorized insurer” in the Service Contract Act must be read to include RRGs. NWIC also seeks to enjoin defendant from preventing it from issuing service contract reimbursement insurance…