Strategies, Challenges, and Answers

Investigating Death During A Life Policy’s Contestability Period Is Not Bad Faith

The story goes that back in the 19th century, some life insurance companies were not fond of paying claims.  Apparently, after the insured died, life insurance companies would regularly investigate and if a misstatement was found in the application, would then deny the claims.  According to Steven Rothschild of the LIFE Foundation, the various states responded by passing incontestability statutes.  Absent outright fraud, or failure to pay premiums, these incontestability statutes limited the … [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...]

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...]

A Breach of Nevada’s Unfair Claims Settlement Practices Act Does Not Amount To Bad Faith Per Se

Good Faith Gone Bad In United States Fidelity & Guaranty Co. v. Peterson, 91 Nev. 617, 540 P.2d 1070 (1975) the Nevada Supreme Court allowed a common law action by an insured against his insurer for a breach of the implied covenant of good faith and fair dealing, commonly called “bad faith”. In order to sustain a bad faith claim, the plaintiff must prove that: 1)   The insurer denied or refused to pay an insured’s claim; 2)   The insurer had no reasonable basis to deny or refuse to pay … [Read more...]

U.S. District Court For Nevada Refuses To Dismiss Extra-Contractual Claims Even Though It Finds There Is No Coverage

Mr. Turk was a builder.  His companies and others built the Rancho del Norte Villas.  The construction was supposed to comply with the Fair Housing Act.  It didn’t.  The Disabled Rights Action Coalition sued Turk and a number of others for the alleged violations.Turk turned to several insurance policies that he thought should cover him.  After various attempts to get a response, he filed for declaratory relief.  Ultimately, the court determined that there was no coverage under any of the … [Read more...]