Strategies, Challenges, and Answers

The Duty To Defend Is Broader Than The Duty To Indemnify

The duty to defend is broader than the duty to indemnify because the duty to defend covers not just claims for which the insured is liable, but also claims for which the insured could be found liable. United Nat’l Ins. Co. v. Frontier Ins. Co., 120 Nev. 678, 687, 99 P.3d 1153, 1158 (2004). Where there is no potential for coverage, there is no duty to defend. Bidart v. Am. Title Ins. Co., 103 Nev. 175, 179, 734 P.2d 732, 734 (1987). When interpreting insurance policy terms, the Nevada Supreme … [Read more...]

What Type of Proceedings Must a Nevada Insurer Defend?

Most liability policies obligate the insurance company to defend its insured in case of a “suit”.  So what proceedings constitute a “suit” that an insurer must defend?  Assuming a duty to indemnify for damages based on a theory of liability put forth in the Complaint, the insurance company has a duty to defend such a lawsuit.  State Farm Mut. Auto. Ins. Co. v. Hansen, 131 Nev. Adv. Op. 74, 357 P.3d 338 (2015).  However, the Nevada Supreme Court has not faced a decision as to whether that duty … [Read more...]

What Triggers An Insurer’s Duty To Defend In Nevada?

A primary insurer's right and duty to defend attaches upon notice of a demand and continues through the litigation to final resolution of the claim.  Allstate Ins. Co. v. Miller, 125 Nev. 300, 309, 212 P.3d 318, 325 (2009). An insurer’s “duty to defend is broader than the duty to indemnify. In other words, as a general rule, an insurer's duty to defend is triggered whenever the potential for indemnification arises, and it continues until this potential for indemnification ceases." Benchmark … [Read more...]

Is The Company Playing Favorites?

Avoid the Allegation That You Have Protected One Insured to the Detriment of Another Every day, insurance adjusters see claims where the insured has not purchased enough liability insurance to cover the loss. In many instances, the injured party will accept payment of the policy limit and release the claim, even though he has not been fully compensated. There are other times where the plaintiff won’t accept the policy limit and will try to recover the excess value of the claim by filing suit … [Read more...]

For Purposes Of Policy Cancellation, One Percentage Point Can Make All The Difference In Deciding Whether The Driver Was “At Fault”

In Nevada, insurance companies cannot cancel, raise premiums or refuse to renew insurance policies where the insured was in an accident that was not his or her fault.  The statute reads: N.R.S. 687B.385  Cancellation, nonrenewal or increase in premium due to claims for which insured was not at fault prohibited.  An insurer shall not cancel, refuse to renew or increase the premium for renewal of a policy of motor vehicle insurance covering private passenger cars or commercial vehicles as a … [Read more...]