Opinion ID: 475301
Heading Depth: 2
Heading Rank: 2

Heading: Insurer.

Text: 14 Lacey contends the district court erred in dismissing his direct action against CNA, claiming the City of Van Buren is insured by CNA. He concedes that the City is not a named insured in the CNA policy. However, he reasons that because Bekaert Steel Wire Corporation purchased the CNA liability insurance pursuant to its municipal financing agreement, the City chose to carry insurance. 15 The district court rejected Lacey's theory as without authority under Arkansas law. It reasoned that because the direct action statute, Ark.Stat.Ann. Sec. 66-3240 (Repl.1980), does not apply to insurance policies carried by private entities, such as Bekaert Steel Wire Corporation, see Savage v. Spicer, 235 Ark. 946, 362 S.W.2d 668 (1962), the narrow purpose of the statute serves only to permit direct action against insurance carriers issuing policies to enumerated immune organizations. The district court's determination concerning the law of the state in which it sits is entitled to considerable deference. Parkerson v. Carrouth, 782 F.2d 1449, 1451 (8th Cir.1986). We thus affirm dismissal of Lacey's direct action claim. 16