Strategies, Challenges, and Answers

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...]

“You Heard It Right The First Time!” The Nevada Supreme Court Reaffirms and Clarifies the Salas Decision In Hall V. Enterprise Leasing Co.

In a previous blog post HERE, we discussed the case of Alamo Rent-A-Car v. State Farm.  The Alamo decision concluded that as between the personal liability coverage of the driver and the statutorily created rental car coverage or self-insurance of NRS 482.305(1), the personal liability coverage of the driver is primary.  Unanswered in the Alamo opinion was what would happen if the claimant’s damages were to exceed the policy limit of the driver’s personal policy.  That issue was addressed in … [Read more...]