Strategies, Challenges, and Answers

Nevada Court Finds That The Graves Amendment Preempts NRS 482.305.

The Nevada Law Blogs have written a lot about Rental Car Liability and the Graves Amendment.  Those posts need an update as a result of the Findings of Fact, Conclusions of Law and Judgment entered in Avalos v. Estate of Cunningham et al, Eighth Jud. Dist. Ct. Case No. A-22-862769-C (Apr. 14, 2023).  The Avalos case involves a woman who rented a vehicle from Budget Car and Truck Rental of Las Vegas.  While driving the rented car, the renter was involved in a parking lot accident.  Avalos … [Read more...]

Excess Policy vs. Umbrella Policy: What Is The Difference?

Often the terms Umbrella Insurance and Excess Insurance are used interchangeably.  Is there a difference?  What is it?Let’s start with primary insurance.  Primary insurance is the first layer of insurance.  Primary insurance provides immediate coverage upon an occurrence or a loss as described by the policy.  Fireman's Fund Ins. Co. v. Md. Cas. Co., 65 Cal. App. 4th 1279, 1304, 77 Cal. Rptr. 2d 296, 311 (1998).  Primary insurers generally have the primary duty of defense.  Olympic Ins. … [Read more...]

It Is Not Bad Faith To Decline Coverage Where A Genuine Dispute Exists

The case of Arlitz v. GEICO Cas. Co., No. 2:19-cv-00743-CDS-DJA, 2022 U.S. Dist. LEXIS 211433 (D. Nev. Nov. 22, 2022) involves a Son, a Father and a Motorcycle Passenger.  The Son loaned his automobile to his Father.  The Father crashed the Son’s auto into the Plaintiff, who was a passenger on a motorcycle.  Plaintiff sustained permanent brain injuries.  The Son’s insurance was Mid-Century.  The Motorcycle insurance was with Progressive Direct.  The Father had insurance with … [Read more...]

No Bad Faith Where There Is A Reasonable Dispute As To Coverage

Gary Lewis had a minimum limits auto policy with United Automobile Insurance Company.  UAIC notified Lewis that the policy was going to lapse.  Lewis took no action and made no payment until July 10, 2007.  However that payment was made ten days after he was supposed to have sent payment according to the renewal notice and two days after Lewis hit and seriously injured minor pedestrian Cheyanne Nalder.When Cheyanne Nalder’s father sued Lewis in behalf of his daughter, UAIC did not step … [Read more...]

Nevada Joins Club Cumis

In State Farm Mut. Auto. Ins. Co. v. Hansen, 131 Nev. 743, 357 P.3d 338 (2015), the Nevada Supreme Court adopted the independent counsel model outlined by the California Court of Appeals in San Diego Federal Credit Union v. Cumis Ins. Society, Inc., 208 Cal. Rptr. 494, 506 (Ct. App. 1984), superseded by statute as stated in United Enters., Inc. v. Superior Court, 108 Cal. Rptr. 3d 25 (App 2010). In its opinion issued on September 24, 2015, the Nevada Supreme Court said that an insurance company … [Read more...]