Strategies, Challenges, and Answers

A Breach of Nevada’s Unfair Claims Settlement Practices Act Does Not Amount To Bad Faith Per Se

Good Faith Gone Bad In United States Fidelity & Guaranty Co. v. Peterson, 91 Nev. 617, 540 P.2d 1070 (1975) the Nevada Supreme Court allowed a common law action by an insured against his insurer for a breach of the implied covenant of good faith and fair dealing, commonly called “bad faith”. In order to sustain a bad faith claim, the plaintiff must prove that: 1)   The insurer denied or refused to pay an insured’s claim; 2)   The insurer had no reasonable basis to deny or refuse to pay … [Read more...]

For Purposes Of Policy Cancellation, One Percentage Point Can Make All The Difference In Deciding Whether The Driver Was “At Fault”

In Nevada, insurance companies cannot cancel, raise premiums or refuse to renew insurance policies where the insured was in an accident that was not his or her fault.  The statute reads: N.R.S. 687B.385  Cancellation, nonrenewal or increase in premium due to claims for which insured was not at fault prohibited.  An insurer shall not cancel, refuse to renew or increase the premium for renewal of a policy of motor vehicle insurance covering private passenger cars or commercial vehicles as a … [Read more...]

What Is The Extent Of Coverage In A Parental Liability Automobile Case?

In a recent post on our Nevada Insurance Law blog, we discussed how the person (usually a parent) who signs a minor’s driver’s license can be vicariously liable for the minor’s conduct.  In the case of United Services Auto. Ass’n v. Crandall, 95 Nev. 334, 594 P.2d 704 (1979), the Nevada Supreme Court gives some direction as to how it will handle coverage in sticky parental liability cases. In Crandall, the father had signed the driver’s license of his 16-year-old daughter.  The daughter took … [Read more...]

Nevada Supreme Court Reaffirms Limits On Emotional Distress Claims

A common motivator of many bad faith plaintiffs is anger.  The insured's feelings are hurt because he or she feels that the claim was improperly handled.  Usually that anger translates into a cause of action for emotional distress. The Nevada Supreme Court reaffirmed its position regarding the level of proof necessary to successfully prosecute an emotional distress claim in the recent case of Betsinger v. D.R. Horton, 126 Nev. Adv. Op. 17, 232 P.3d 433, (May 27, 2010).  In that case, the … [Read more...]

Caution: Watch Your “Step-Down”

“Step-Down” provisions in insurance policies are becoming more and more common.  When I speak about a “Step-Down” provision, I am talking about policy language that purports to reduce a higher policy limit to the amount of the Financial Responsibility limit allowed by state law. From an underwriting standpoint, “Step-Down” provisions make sense.  Let’s say a carrier wants to “Step-Down” the liability coverage for drivers who are permitted users of the vehicle but are not rated drivers on the … [Read more...]