Strategies, Challenges, and Answers

Nevada Allows Policyholders To Sue Certain Managing General Agents and Third-Party Administrators For Bad Faith

An agent who acts for a disclosed principal is not liable for commitments made by the agent in the principal’s behalf.  See ALI’s Restatement (Second) of Agency § 320 (1958).  In the field of insurance, managing general agents, third-party administrators and independent adjusters have regularly shielded themselves from claims of bad faith brought by policyholders’ against the insurance company for which that agent works.  But that rule of hornbook law is beginning to erode following insurance … [Read more...]

Insured Claimants Have A Private Right Of Action Against An Individual Nevada Licensed Independent Adjuster For A Violation Of The Nevada Unfair Claims Settlement Practices Act

Nevada's Unfair Claims Practices Act (NRS 686A.310(2)) creates a private right of action against an "insurer" for violations of the act.  Adjusters might believe that when Plaintiffs allege Unfair Claims Practice that they can point to the "insurer" as the only party who must answer for their violations. However, independent adjusters would be mistaken in their belief. Nevada Licensed Independent Adjusters are familiar with NRS Chapter 684A.  That is the section of the law that details … [Read more...]