Strategies, Challenges, and Answers

Settlement, Unsettled

The claimant’s counsel makes a policy limit demand. After receiving authority to settle for the liability limits, you tender the policy limit and your company’s standard Release.  Claimant’s counsel rejects the Release.  Instead, counsel insists on a Covenant Not to Execute.  Why would the attorney do that?

This post will hopefully give you more information regarding the distinctions between these two types of settlement documents and the advantages and disadvantages of each.

What is the distinction between a covenant and a release?

Both releases and covenants are contracts under Nevada law.  However, a release extinguishes a plaintiff’s cause of action and the insured’s liability.  If the claimant signs a release, the claimant cannot subsequently sue the insured.  This is the settlement document used in most claims and is the preferred document to protect the insured.

In contrast, Covenants generally allow the claimant to sue the insured even after the insurance company makes payment of the limits.  A Covenant protects the insured because the claimant promises not to pursue the insured’s personal assets, protecting the insured from execution and garnishment should a judgment follow in a subsequent lawsuit.  However, that protection is not complete.   [Continue reading]

Happy Thanksgiving From Bauman Loewe Witt & Maxwell

Happy Thanksgiving

All of us at Bauman Loewe Witt & Maxwell would like to take a moment to wish our clients, family and friends (including all of our loyal blog readers), a very joyous and Happy Thanksgiving. Whether you are celebrating with a small gathering, … [Continue reading]

Mike Mills Contributes to DRI’s 2016 Uninsured/Underinsured Compendium

Uninsured Motorist and Underinsured Motorist Coverage 2016 Compe

DRI has honored Mike Mills by selecting him to contribute to its 2016 Uninsured/Underinsured Motorist Compendium. DRI turns to it most respected members from across the country to author state-specific sections to all of its Compendia. Mike Mills was … [Continue reading]

Let’s Appreciate and Remember Our Veterans; on Veterans Day and Everyday

Veterans Day Heart Design

We celebrate Veterans Day on November 11. Americans honor the brave men and women of the armed forces who risk their lives to protect our freedom. They include past and present members of the US Army, Navy, Marine Corps, National Guard, Air Force, … [Continue reading]

It’s Nevada, not Nev-ah-da . . . Happy Nevada Day!


Before it was a political issue in the presidential race, it was an issue in my family.  Relatives from out of state just could not get the name right.  And like a certain candidate, my relatives insisted that the linguistic pronunciation was … [Continue reading]