Strategies, Challenges, and Answers

In Nevada, An Insurance Agent Or Broker Is Generally An Agent Of The Insured, Not The Insurer

It was a terrible fire.  On November 21, 1980, 85 people died when a refrigerated pastry display caught fire at the MGM Grand in Las Vegas.  The Grand Hotel Gift Shop was destroyed in the fire.  The Gift Shop suffered almost a $1,000,000 in business interruption damages.  The Gift Shop sued its insurance broker, and the insurance company that wrote its business interruption insurance, Granite State Insurance.  Prior to trial, the Gift Shop settled with the broker and resolved several of its … [Read more...]

Nevada Does Not Recognize An Independent Tort Action For Spoliation

After remodeling, the Taco Cabana Restaurant was open again for business. But the remodeled decorative ceiling collapsed onto the customers.  People were hurt.  A lawsuit followed.The contractors and the restaurant entered into an agreement to preserve the collapsed ceiling until all lawsuits regarding the collapse were resolved.  Thereafter, the insurance companies of the contractor and the restaurant became involved.  The insurance companies paid the warehouse fees to store the debris. But … [Read more...]

Negligent Entrustment Of Motorcycle Not Covered By Homeowner’s Policy

Mr. Gregory had a motorcycle. It was a piece of work. The tires were bald.  The front tire was underinflated.  The rear tire was overinflated.  Mr. Gregory loaned the motorcycle to his son Jimmey. But to be safe, Mr. Gregory gave his son a couple of modified helmets.Jimmey was taking Phillip Senteney on a ride on the bike.  Jimmey crashed. Phillip was hurt.Mr. Gregory had motorcycle insurance with $100,000 in liability coverage.  Phillip Senteney’s dad was not satisfied.  He refused … [Read more...]

Nevada’s Exclusive Remedy Provision Prevents Employees From Suing Insured Employers For On-The-Job Injuries In Nearly All Cases

“Have you been injured?” is a common question posed by personal injury attorneys who are looking for new clients.  But just because a person was injured in an accident does not mean that the injured person can prevail in a negligence suit against the person causing the harm.Take for example, a person injured on the job.  Under Nevada law, if a person is injured in the course and scope of employment, the injured worker cannot succeed in a suit against a properly insured employer except under … [Read more...]

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...]