Strategies, Challenges, and Answers

Nevada’s Compulsory Auto Insurance Law and Nevada’s Financial Responsibility Law Working Hand In Hand

In the area of Nevada automobile insurance coverage, there are regular references to the Nevada’s Compulsory Automobile Insurance Law, N.R.S. 485.185 - 485.187, and its Financial Responsibility Law, N.R.S. 485.190 – 485.420.  In answering coverage questions, it is important to understand the purpose of each of these laws and to differentiate between the effects of that these laws have.  The case of State of Nev., Dep’t of Motor Vehicles v. Lawlor, 101 Nev. 616, 707 P.2d 1140 (1985) does a good … [Read more...]

Salas v. Allstate Rent-A-Car: Rental Car Companies May Need To Provide A Second Layer Of Auto Insurance Coverage

Every motor vehicle registered in Nevada must have a minimum level of liability insurance, namely, $15,000 per person, $30,000 per occurrence and $10,000 for property damage. N.R.S. § 485.185.  The Nevada Financial Responsibility law is meant to insure that individuals who are injured in motor vehicle accidents have a source of indemnification. Hartz v. Mitchell, 107 Nev. 893, 896, 822 P.2d 667, 669 (1991).  The opinion of Alamo Rent-A-Car v. State Farm, 114 Nev. 154, 953 P2d 1074 (1998), which … [Read more...]

Can Plaintiff Discover An Insurance Company’s Involvement In A Prior Bad Faith Suit?

Evidence that an insurance company acted in bad faith in handling a specific claim may come from a variety of sources. Plaintiff’s attorneys may argue that the way the insurance company handled other claims is evidence that it acted in bad faith in the subject case. Those attorneys may point to other bad faith suits or verdicts against the company as evidence of bad faith in the way it handled this claim. Can such evidence be discovered? Is it admissible? The Nevada Supreme Court has not spoken … [Read more...]

Auto Insurance Carriers Cannot Compel Arbitration, But It Never Hurts To Ask

Most auto insurance policies include a provision that allows the insurance company and the insured to arbitrate first party disputes.  However, attempts to compel arbitration under auto insurance contracts are forbidden in Nevada: NRS 690B.017 provides:NRS 690B.017  Provisions for arbitration not binding.  No provision for arbitration contained in an automobile liability or motor vehicle liability insurance policy delivered, issued for delivery or renewed in this State is binding upon the … [Read more...]

Never Say Never

Why it may be ill advised for an insurance company to say that it will never go off panel to assign work to insurance defense attorneys...Recently, Mills & Associates logged into a webcast sponsored by an insurance industry organization.  The webcast’s expert panel was convened to discuss how defense attorneys could better improve the “insurance defense relationship”.As I listened to the panel members, it was reinforced to me how much insurance companies like to follow predetermined … [Read more...]