Strategies, Challenges, and Answers

Settlement, Unsettled

The claimant’s counsel makes a policy limit demand. After receiving authority to settle for the liability limits, you tender the policy limit and your company’s standard Release.  Claimant’s counsel rejects the Release.  Instead, counsel insists on a Covenant Not to Execute.  Why would the attorney do that? This post will hopefully give you more information regarding the distinctions between these two types of settlement documents and the advantages and disadvantages of each. What is the … [Read more...]

Mike Mills Contributes to DRI’s 2016 Uninsured/Underinsured Compendium

DRI has honored Mike Mills by selecting him to contribute to its 2016 Uninsured/Underinsured Motorist Compendium. DRI turns to it most respected members from across the country to author state-specific sections to all of its Compendia. Mike Mills was selected to author the Nevada section of the 2016 Uninsured/Underinsured Motorist Compendium. A full copy the Compendium can be ordered from DRI at UM/UIM Compendium. Feel free to preview the Compendium . The Nevada section by Mike Mills can be … [Read more...]

When Is A UM/UIM Provider Bound By A Judgment Against The Tortfeasor?

Lucky for John Pietrosh, his parents bought UM/UIM coverage as part of their Allstate auto insurance policy.  Not so lucky for John, one day in July 1966, he was riding his bike when an uninsured driver hit and injured him. His parents reported the accident to their Allstate agent.  The agent responded that the family was “fully covered” and that it would “take care of the whole thing”. The Pietrosh family sued the uninsured driver and sent notice of the suit to Allstate.  Allstate did not … [Read more...]

When Is It Too Late For A UM/UIM Carrier To Intervene In The Underlying Litigation?

Eric and Erwin Lopez were hurt when a negligent and underinsured driver hit their car.  They sued the driver.  As discovery progressed, Eric and Erwin convinced the driver to settle.  However, they would not give the negligent driver a release.  Instead, they offered the driver a Covenant Not to Execute against him in excess of his bodily injury liability limits.  The negligent and underinsured driver accepted.  The bodily injury liability limits were paid and the Covenant provided.  However, … [Read more...]

Avoid UM / UIM Stacking By Meeting These Three Requirements

Nevada law authorizes auto insurance companies to avoid stacking their uninsured / underinsured motorist coverage. But before a court will enforce a policy’s anti-stacking provision the company must meet three requirements. See Neumann v. Standard Fire Ins. Co. of Hartford, Conn., 699 P.2d 101, 103 (Nev. 1985). The three requirements are: (1)       Clarity; (2)       Prominence; and, (3)       The insured cannot have paid full premiums on each of the separate risks covered by the … [Read more...]