Nevada is one of a handful of states that creates a private right of action for violations of its Unfair Claims Settlement Practice Act, NRS 686A.310. Subsection (2) of the statute provides that “an insurer is liable to its insured for any damages sustained by the insured as a result of the commission of any act set forth in subsection 1 as an unfair practice.” Third-party claimants have asked whether this private right of action extends to them. The answer from the Nevada Supreme Court is a … [Read more...]
Nevada’s Unfair Claims Settlement Practices Act Does Not Create A Third-Party Private Right Of Action
Nevada Does Not Recognize Third-Party Bad Faith
Greg Gunny claimed that his father Ralph negligently operated his boat and injured him. Greg wasn’t happy with the speed at which his father’s insurance, Allstate, was handling the claim. Greg Gunny sued Allstate directly for bad faith. In the case of Gunny v. Allstate Ins. Co., 108 Nev. 344, 830 P.2d 1335 (1992) the Nevada Supreme Court addressed the question of whether the third-party son had a cause of action for bad faith directly against his father’s insurance company. The Nevada … [Read more...]