NEVADA INSURERS CANNOT DENY CLAIM DUE TO INSURED’S LACK OF COOPERATION
August 09th, 2016/By Admin/In Newsletter
Nevada Insurers Cannot Deny Claim Due To Insured’s Lack Of Cooperation
On November 16, 2015, The Nevada Division of Insurance issued Bulletin No. 15-008 setting forth its position that a motor vehicle carrier cannot deny a claim based on the inability of an insurer to verify a loss through its insured. The DOI stated such an act is in violation of NRS 485.3091 and constitutes an unfair claims settlement practice under NRS 686A.310.
Bulletin 15-008 was issued by the DOI in response to numerous complaints it had received about automobile insurance carriers denying third-party liability claims based on the insurer’s inability to verify the loss through their insured; and in light of the recent Nevada Supreme Court ruling in Torres v. Nevada Direct Insurance Company which holds that a third-party can sue the tortfeasor’s insurer to enforce compliance with NRS 485.3091. The Supreme Court noted however that the third party still has no standing to file a bad faith claim against the opposing party’s carrier .
[This article is for informational purposes only and does not constitute legal advice. Do not act or rely upon any of the resources and information contained herein without seeking appropriate professional assistance.]