Strategies, Challenges, and Answers

Nevada Allows Policyholders To Sue Certain Managing General Agents and Third-Party Administrators For Bad Faith

An agent who acts for a disclosed principal is not liable for commitments made by the agent in the principal’s behalf.  See ALI’s Restatement (Second) of Agency § 320 (1958).  In the field of insurance, managing general agents, third-party administrators and independent adjusters have regularly shielded themselves from claims of bad faith brought by policyholders’ against the insurance company for which that agent works.  But that rule of hornbook law is beginning to erode following insurance … [Read more...]

A Nevada Insurance Company Does Not Commit Bad Faith By Simply Denying A Claim

Luck was not with Jose Montes.  He was hurt in a very serious motor accident.  He was hospitalized for six weeks and spent 46 weeks at home recovering.  Lucky for Mr. Montes he had purchased an accident insurance policy through agent Bank of America from insurer National Union Fire Insurance Company.  Unlucky though because when he made claim for benefits under the policy his claim was denied.  He believed that the insurance should have paid and that the exceptions to coverage were fraudulently … [Read more...]

A Policyholder Cannot Prevail Under NRS 686A.310(f) Unless There Has Been An “Ultimate Recovery”

Hartford’s policyholder was hurt in two separate accidents, once in 2009 and then again in 2010.  She collected policy limit settlements from each tortfeasor.  She then turned to Hartford, her UIM carrier. She demanded a policy limit settlement for each accident. When the parties could not agree on the value of either claim, the policyholder sued Hartford for breach of contract, bad faith and violations of Nevada's Unfair Claims Settlement Practices Act. (UCSPA). Mueller v. Prop. and Cas. Ins. … [Read more...]

UIM Bad Faith Damages Do Not Include Those Bodily Injury Damages That Are In Excess Of Both The Liability And The UIM Policy Limits

Mr. Bartlett had a dispute with his insurance company. He disagreed with the insurance company’s valuation of his underinsured motorist case. Bartlett sued the tortfeasor and got a judgment against him that was in excess of the torfeasor’s liability limits and in excess of Bartlett’s own underinsured (UIM) motorist coverageWith the judgment in hand, Bartlett filed a suit against his UIM carrier for bad faith.  Bartlett v. State Farm Mut. Auto. Ins., Case No. IP01-0510-C-HG, (D.C. Ind., Nov. … [Read more...]

The Carmack Amendment Preempts State Insurance Law Claims For Bad Faith And Unfair Claims Settlement Practices.

Mills & Associates’ practice focuses in a limited number of areas.  Two practice areas of interests are insurance bad faith law and trucking law.  So it is always interesting to find a case that we can blog about that that touches on both areas.  This is one of those cases.The Nichols family hired Mayflower Transit, LLC to transport their household good from Sacramento, CA to Henderson, NV.  The goods made it over the Nevada state line, but not all the way to the Nichols’ home.  A … [Read more...]