Strategies, Challenges, and Answers

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...]