What Is the Bad Faith Law in Nevada?

Most insurance—such as auto, home, and commercial—is primarily for risk management. The idea is that you pay premiums in exchange for financial protection in the case of an accident or other emergency. It is logical to assume that the insurer that you pay for protection will honor the terms of their policy when you need them most. Unfortunately, this does not always happen. There are far too many instances of insurance companies delaying or denying claims without any valid reason—an action known as acting in “bad faith.”

Bad faith law in Nevada is designed to protect policyholders from unjust and unfair insurance delays and denials and other policy violations. When an insurer mistreats you or fails to fulfill its contractual obligations, you have every right to hold them accountable by filing a bad faith claim.

What Is Bad Faith?

Bad faith law in Nevada allows policyholders to file a claim against an insurer following unfair or dishonest practices such as:

• Unreasonable claim denial
• Undervaluing claims
• Failing to investigate a claim
• Delaying payment
• Refusing to honor coverage
• Misrepresentation of policy terms
• And much more

If you have filed a legitimate claim with your insurer only to have your coverage delayed or denied, you may have a bad faith claim. The best way to learn if you are qualified to file suit is through a private, confidential, and FREE case review with a Las Vegas bad faith insurance attorney.

To schedule an obligation-free case evaluation with one of our experienced attorneys, call Burg Simpson at 702-668-2070 today. The bad faith insurance attorneys at our Las Vegas office serve frustrated policyholders living in Reno, Henderson, and throughout Nevada.

Understanding Bad Faith Law in Nevada

Under Nevada’s bad faith insurance law, insurers are required to handle claims fairly and reasonably. The Nevada Unfair Claims Practices Act (NRS. 686A), an insurer may be held liable for acting in bad faith if the company or its agents:

• Misrepresent the facts of the claim or policy provisions relating to coverage.
• Fail to acknowledge or act “reasonably promptly” with communication during the claims process.
• Fail to adopt and implement “reasonable standards” for investigating and processing claims.
• Fail to affirm or deny coverage within a reasonable time after proof has been submitted.
• Fail to provide fair and equitable settlements of claims following the establishment of liability.
• Attempt to compel policyholders to file suit due to intentionally low settlement offers.
• Attempt to settle a claim for less than the amount a “reasonable person” would feel entitled to.
• Attempt to settle claims with an application that has been altered without the policyholder’s consent.
• Fail to inform claimants of the coverage for which payment is being made.
• Attempt to compel policyholders to accept less than the amount awarded in arbitration.
• Delays the investigation or payment of claims by requiring multiple types of redundant evidence.
• Fail to settle claims under one portion of the policy to influence settlements under another portion of the policy.
• Fail to promptly provide a valid explanation and legal precedent for denial of a claim.
• Provide misleading information about the statute of limitations.

It is also a violation of bad faith law in Nevada for insurance companies to make any attempts to dissuade a policyholder from speaking with a bad faith lawyer. If an insurance company is found to violate any of these practices, it may face penalties—including compensatory and punitive damages.

For policyholders, understanding bad faith law in Nevada can be incredibly complex. Speaking to a bad faith insurance attorney can help you understand your rights and options. These attorneys know how to identify bad faith practices and how to help victims of this practice secure compensation for the losses they have suffered due to the insurer’s misconduct.

What Is the Statute of Limitations for Bad Faith Insurance Claims in Nevada?

Under bad faith law in Nevada, policyholders typically have four years to file a claim against their insurer. This is four years from the date of the bad faith event, not the date of the accident that prompted the claim.

Even with this somewhat generous statute of limitations, taking swift action is always best. The longer you wait to speak with a bad faith insurance attorney from our Las Vegas office, the more convoluted and complex the process can become. If you suspect you have been the victim of bad faith insurance practices, we encourage you to reach out right away for a free claim evaluation.

What Should I Do If I am the Victim of Bad Faith?

If you suspect your insurance company is acting in bad faith, your first step should be to document all communications and actions they take. Keep detailed records of phone calls, emails, and letters, but remember that, in Nevada, you cannot record a phone call without the consent of all involved parties. This means that, unless you state clearly that you are recording a call and get verbal confirmation that this is okay, nothing on the recording will be admissible as evidence for your bad faith claim.

The next step is bringing your evidence and your story to an experienced Las Vegas bad faith insurance lawyer. Having an attorney on your side offers several advantages, not the least of which is providing you with a viable avenue to seek the compensation you are owed. Your lawyer will fight for your rights, negotiate with insurance on your behalf, and, when necessary, take your case to trial in their pursuit of justice. Without an attorney, you are left at the mercy of a company that has already shown a willingness to operate in bad faith. It is unlikely your solo protests will net a different result.

Burg Simpson Is Here to Listen

At Burg Simpson, our attorneys understand how stressful and frustrating it can be when your insurance company refuses to honor its commitments. Our Nevada office, led by proven trial attorney Jack F. DeGree, is dedicated to helping victims of bad faith practices secure the compensation they are owed. With more than 45 years of experience and more than $2 billion recovered for our clients, our firm has the resources, knowledge, and tenacity to effectively fight for your rights.

When you choose Burg Simpson, you are choosing a practice that puts your needs first. We will take the time to listen to your story, thoroughly evaluate your claim, and help you understand your options. Our award-winning lawyers will develop a personalized legal strategy—tailored to your specific situation—to detail what you are owed and take your claim as far as necessary to help ensure you receive every penny you are due.

Good Lawyers. Changing Lives.®

If you believe you are the victim of a bad faith insurance practice, contact Burg Simpson for a FREE consultation today. Our bad faith insurance attorneys serve Las Vegas and all nearby areas of Nevada.