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 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...]

Ambiguous State Farm UM Coverage Allows Wife To Recover For Separate Emotional Distress Caused By Witnessing Husband’s Death

Mrs. Brewington rode her motorcycle a little behind Mr. Brewington on State Highway 49 in California. An oncoming rider crossed the center line striking Mr. Brewington and ejecting him from his bike. Mrs. Brewington witnessed the collision, stopped and called for assistance. Mr. Brewington died on the way to the hospital with Mrs. Brewington by his side.The negligent rider had no liability insurance. However, the Brewingtons had UM coverage with their motorcycle carrier State Farm in the … [Read more...]