Jesse Kalberer and Eileen Mediola were in a car accident. Ms. Mediola’s attorney sent a policy limit demand to Jesse’s auto carrier, American Family. American Family rejected the demand claiming that the injuries were pre-existing and that the medical bills were overstated. American Family warned Jesse of a possible excess verdict. Plaintiff even emailed American Family and asked the company to settle so as to not expose Jesse to an excess verdict. At the same time, Jesse’s defense … [Read more...]
A Reasonable Defense Trumps Bad Faith Even With Multiple Policy Limit Demands And An Excess Verdict
Nevada Follows Bad Faith Standard Enunciated In Anderson v. Continental Ins. Co.
Primarily, courts across the nation have applied two different standards to determine whether an insurance company has acted in bad faith. First is the standard set by the California Supreme Court case of Gruenberg v. Aetna Ins. Co., 9 Cal 3d 566, 510 P.2d 1032 108 Cal. Rptr. 480 (1973). In Gruenberg, the California Supreme Court found that an insurer breaches the covenant of good faith and fair dealing when it refuses “without proper cause, to compensate its insured for a loss covered by … [Read more...]