Strategies, Challenges, and Answers

The Duty To Defend Continues Through The Entire Litigation

Once the duty to defend arises, the insurer’s duty continues throughout the entire litigation.  United Nat’l Ins. Co. v. Frontier Ins. Co., 120 Nev. 678, 687, 99 P.3d 1153, 1158 (Nev. 2004).  The duty to defend continues until final resolution of the claim.  Allstate Ins. Co. v. Miller, 125 Nev. 300, 309, 212 P.3d 318, 325 (2009).  An insurance company may not terminate its duty to defend by depositing the insurance proceeds with the court when the policy terms are ambiguous as to whether the policy specifically permits such an action.  Benchmark Ins. Co. v. Sparks, 127 Nev. Adv. Op. 33, 254 P.3d 617, 623 (2011).

As to the duty to appeal, Nevada would likely follow California requiring a duty to appeal only in certain circumstances.  See Jenkins v. Ins. Co. of N. America, 220 Cal. App. 3d 1481, 1489, 272 Cal. Rptr. 7 (App. 1990) (holding that “a duty to defend may include the duty to appeal where reasonable grounds for an appeal exist”).  [Continue reading]

An Insured Can Seek A Broad Range Of Damages If An Insurer Wrongfully Fails To Defend

Failure of Duty to Defend

In Nevada, if an insurance company breaches its duty to defend, it can expect to face a wide array of possible damages If the insured takes up its own defense, the insurer can expect to pay the reasonable costs incurred by the insurer in the … [Continue reading]

Insurance Fraud Can Be A Lot of Things.

Nevada’s definition of “insurance fraud” is very broad. NRS 686A.2815.  Some may think that it requires presenting papers or evidence to an insurer in order to commit fraud.  However, those people would be incorrect.  Fraud can include concealing … [Continue reading]

When Will Nevada Allow An Insurer The Right Of Recoupment?

We know that the duty to defend is broader than the duty to indemnify.  Benchmark Ins. Co. v. Sparks, 254 P.3d 617, 620-21 (2011). We also know that once the duty to defend kicks in on one claim, the insurance company is obliged to defend the insured … [Continue reading]

Does An Insurer Have A Duty To Defend When Other Insurers Have Already Taken Up The Defense?

The Nevada Supreme Court has not decided whether an insurance company is obliged to defend when other insurers, who also owe a duty to defend the same insured, have already taken up the defense..  The cases of Commercial Standard Ins. Co. v. Tab … [Continue reading]