Insurance Carriers May Have Ten Extra Days To Respond

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Although they are few and far between, there are a few perks given to insurance companies that are made Defendants in suits brought against them in Nevada.

You may know that when an insurance company is licensed to do business in Nevada, that carrier must designate the Division of Insurance as its agent for service of process.  If a summons and complaint is filed naming an insurance company and if that complaint is served upon the Nevada Division of Insurance, the insurance carrier has 30 days to respond to the Complaint as compared to the regular 20 that most other Defendants have.

From Nevada Revised Statutes:

NRS 680A.250  Commissioner agent for service of process for certain insurers.

      1.  Before the Commissioner may authorize it to transact insurance in this state, each insurer must appoint the Commissioner, and the Commissioner’s successors in office, as its attorney to receive service of legal process issued against the insurer in this state. The appointment must be made on a form as designated and furnished by the Commissioner, and must be accompanied by a copy of a resolution of the board of directors or like governing body of the insurer, if an incorporated insurer, showing that those officers who executed the appointment were authorized to do so on behalf of the insurer.

      2.  The appointment must be irrevocable, must bind the insurer and any successor in interest to the assets or liabilities of the insurer, and must remain in effect as long as there is in force any contract of the insurer in this state or any obligation of the insurer arising out of its transactions in this state.

      3.  Service of such process against a foreign or alien insurer must be made only by service thereof upon the Commissioner.

      4.  Service of such process against a domestic insurer may be made as provided in this section, or in any other manner provided by Nevada Rules of Civil Procedure.

      5.  At the time of application for a certificate of authority the insurer shall file the appointment with the Commissioner, together with a designation of the person to whom process against it served upon the Commissioner is to be forwarded. The insurer shall provide written notice to the Commissioner of any change of such a designation by a new filing.

This may not seem like much, but it gives the carrier an extra few days to decide whether to file a responsive pleading, to file a motion pursuant to Rule 12 or even to remove to federal court.  These additional extra days can be important to the responding attorney, giving that counsel time to acquire a certified copy of the policy and make sure that all the appropriate defenses are asserted.

Always remember to take advantage of this extra time allotted under the N.R.S.