As this blog has discussed on previous occasions, victims of accidents who feel that an insurance company is acting unfairly when processing a claim, or who feels that the company is intentionally stalling in order to force a favorable settlement, may be able to raise a claim of bad faith against the insurance company.
Although they might both be thought of as bad faith claims in common parlance, Nevada actually offers two distinct options for hold insurance companies who behave unreasonably in the process of handling a claim.
For one, a person can accuse the company of violating a Nevada law that prohibits insurance companies from engaging in claim handling practices that are unfair to those whom insurance companies are supposed to serve or protect. Basically, provisions of this law prohibit insurance companies from unduly holding up a claim or otherwise flexing their muscle for their financial advantage.
If a company violates this law, then it can receive an administrative penalty. Additionally, if the violation actually caused the accident victim some sort of loss, then the victim can pursue compensation for that loss.
Depending on the circumstances, a person dealing with a stubborn insurance company may also raise a claim of bad faith against the company. As a word of warning, though, the fact that the company may have engaged in one or even several prohibited claim handling practice does not automatically mean the company is liable for bad faith. Additional proof may be required, and a person interested in pursuing a bad faith claim should therefore evaluate his or her options with an experienced attorney.