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In Nevada, uninsured (UM) and underinsured (UIM) come as part of the same insurance offering. The law requires that both auto coverages must be offered. NRS 687B.145(2). While UM and UIM may be legally one and the same coverage, they are treated very differently when it comes to subrogation.
If the at-fault driver is uninsured, the law allows the UM carrier to be subrogated to the amount that it paid to the insured for the UM loss.
NRS 690B.020(5) says:
5. If payment is made to any person under uninsured vehicle coverage, and subject to the terms of the coverage, to the extent of such payment the insurer is entitled to the proceeds of any settlement or recovery from any person legally responsible for the bodily injury as to which payment was made, and to amounts recoverable from the assets of the insolvent insurer of the other motor vehicle.
On the other hand, there can be no subrogation if the opposing driver is underinsured. NRS 687B.145 (4) states:
4. An insurer who makes a payment to an injured person on account of underinsured vehicle coverage as described in subsection 2 is not entitled to subrogation against the underinsured motorist who is liable for damages to the injured payee. This subsection does not affect the right or remedy of an insurer under subsection 5 of NRS 690B.020 with respect to uninsured vehicle coverage. As used in this subsection, “damages” means the amount for which the underinsured motorist is alleged to be liable to the claimant in excess of the limits of bodily injury coverage set by the underinsured motorist’s policy of casualty insurance.
Call Mike Mills at Mills & Associates if you have UM/UIM coverage and subrogation questions.
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