Nev. Rev. Stat. § 686A.310

Unfair practices in settling claims; liability of insurer for damages

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NRS 686A.310  Unfair practices in settling claims; liability of insurer for damages.

      1.  Engaging in any of the following activities is considered to be an unfair practice:

      (a) Misrepresenting to insureds or claimants pertinent facts or insurance policy provisions relating to any coverage at issue.

      (b) Failing to acknowledge and act reasonably promptly upon communications with respect to claims arising under insurance policies.

      (c) Failing to adopt and implement reasonable standards for the prompt investigation and processing of claims arising under insurance policies.

      (d) Failing to affirm or deny coverage of claims within a reasonable time after proof of loss requirements have been completed and submitted by the insured.

      (e) Failing to effectuate prompt, fair and equitable settlements of claims in which liability of the insurer has become reasonably clear.

      (f) Compelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by such insureds, when the insureds have made claims for amounts reasonably similar to the amounts ultimately recovered.

      (g) Attempting to settle a claim by an insured for less than the amount to which a reasonable person would have believed he or she was entitled by reference to written or printed advertising material accompanying or made part of an application.

      (h) Attempting to settle claims on the basis of an application which was altered without notice to, or knowledge or consent of, the insured, or the representative, agent or broker of the insured.

      (i) Failing, upon payment of a claim, to inform insureds or beneficiaries of the coverage under which payment is made.

      (j) Making known to insureds or claimants a practice of the insurer of appealing from arbitration awards in favor of insureds or claimants for the purpose of compelling them to accept settlements or compromises less than the amount awarded in arbitration.

      (k) Delaying the investigation or payment of claims by requiring an insured or a claimant, or the physician of either, to submit a preliminary claim report, and then requiring the subsequent submission of formal proof of loss forms, both of which submissions contain substantially the same information.

      (l) Failing to settle claims promptly, where liability has become reasonably clear, under one portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy coverage.

      (m) Failing to comply with the provisions of NRS 687B.310 to 687B.390, inclusive, or 687B.410.

      (n) Failing to provide promptly to an insured a reasonable explanation of the basis in the insurance policy, with respect to the facts of the insured’s claim and the applicable law, for the denial of the claim or for an offer to settle or compromise the claim.

      (o) Advising an insured or claimant not to seek legal counsel.

      (p) Misleading an insured or claimant concerning any applicable statute of limitations.

      2.  In addition to any rights or remedies available to the Commissioner, an insurer is liable to its insured for any damages sustained by the insured as a result of the commission of any act set forth in subsection 1 as an unfair practice.

      (Added to NRS by 1975, 1285; A 1987, 1067; 1991, 2202)

     

Notes of Decisions
Cited in 194 cases (121 in the last 5 years), 1985–2026 · leading case: Pioneer Chlor Alkali Co. v. National Union Fire Insurance
Pioneer Chlor Alkali Co. v. National Union Fire Insurance (1994) nvd · cites it 68× “*1242 Pioneer’s unfair claim practices claim is based primarily on NRS 686A.310. Pioneer does not explicitly set out which subsections of NRS 686A.”
Zurich American Insurance v. Coeur Rochester, Inc. (2010) nvd · cites it 50× “On June 11, 2008, Coeur filed its Answer and Counterclaim (#8), seeking damages for breach of contract, bad faith, and violation of Nevada’s Unfair Trade Practices Act, Nev.Rev.Stat. § 686A.310. Zurich filed the pending “Motion for Summary Judgment or, in the Alternative,…”
Hendon v. Geico Ins. Agency (2019) nvd · cites it 22× “For the following reasons, the Court grants Geico's motion and dismisses Plaintiff's second cause of action for violations of NRS § 686A.310. II.”
Albert H. Wohlers & Co. v. Bartgis (1999) nev · cites it 24× “The district court erred in finding that Wohlers was liable under NRS 686A.310 Wohlers asserts that it is not an insurer within the meaning of the applicable statutory definition and, thus, it cannot be held liable for alleged unfair claims practices proscribed under NRS 686A.”
Hackler v. State Farm Mutual Automobile Insurance Co. (2016) nvd · cites it 22× “Hackler now moves for partial summary judgment on her claims that State Farm violated the Nevada’s unfair trade practices statute, NRS § 686A.310, as well as and NRS § 690B.”
Powell v. Liberty Mutual Fire Insurance (2011) nev · cites it 7× “3 Powell also challenges the dismissal of her NRS 686A.310 claim. Powell failed to present any argument on her NRS 686A.”
Walker v. State Farm Mutual Automobile Insurance Co. (2017) nvd · cites it 9× “The complaint alleges six causes of action: (1) breach of contract; (2) violation of the Unfair Claims Practices Act, NRS 686A.310 et seq.; (3) breach of the covenant of good faith and fair dealing; (4) breach of fiduciary duty; (5) misrepresentation; and (6) punitive damages.”
Hart v. Prudential Property & Casualty Insurance (1994) nvd · cites it 16× “§ 686A.310 was added to the Nevada Insurance Code.”
Fernandez v. State Farm Mut. Auto. Ins. Co. (2018) nvd · cites it 10× “47 But Fernandez's complaint lacks an NRS 686A.310 claim even under a liberal reading.”
Schumacher v. State Farm Fire & Casualty Co. (2006) nvd · cites it 9× “To the extent that Schumacher’s complaint seeks damages for violation of NRS 686A.310, the complaint was filed within the applicable limitation period.”
Rosas v. Geico Cas. Co. (2019) nvd · cites it 4× “Rosas asserts four causes of action: (1) breach of contract, (2) unfair practices in settling claims in violation of Nevada Revised Statutes § 686A.310, (3) bad faith and breach of the covenant of good faith and fair dealing, and (4) declaratory relief.”
Turk v. TIG Insurance (2009) nvd · cites it 11× “3I0 Turk also brings a statutory claim, alleging that Defendants violated Nev.Rev.Stat. § 686A.310, Nevada’s Unfair Claim Practices statute.”
— Nev. Rev. Stat. § 686A.310(1) — 21 cases
Walker v. State Farm Mutual Automobile Insurance Co. (2017) nvd “The complaint alleges six causes of action: (1) breach of contract; (2) violation of the Unfair Claims Practices Act, NRS 686A.310 et seq.; (3) breach of the covenant of good faith and fair dealing; (4) breach of fiduciary duty; (5) misrepresentation; and (6) punitive damages.”
Pioneer Chlor Alkali Co. v. National Union Fire Insurance (1994) nvd “*1242 Pioneer’s unfair claim practices claim is based primarily on NRS 686A.310. Pioneer does not explicitly set out which subsections of NRS 686A.”
— Nev. Rev. Stat. § 686A.310(1)(a) — 21 cases
Zurich American Insurance v. Coeur Rochester, Inc. (2010) nvd “On June 11, 2008, Coeur filed its Answer and Counterclaim (#8), seeking damages for breach of contract, bad faith, and violation of Nevada’s Unfair Trade Practices Act, Nev.Rev.Stat. § 686A.310. Zurich filed the pending “Motion for Summary Judgment or, in the Alternative,…”
— Nev. Rev. Stat. § 686A.310(1)(b) — 11 cases
Hendon v. Geico Ins. Agency (2019) nvd “For the following reasons, the Court grants Geico's motion and dismisses Plaintiff's second cause of action for violations of NRS § 686A.310. II.”
— Nev. Rev. Stat. § 686A.310(1)(c) — 16 cases
Zurich American Insurance v. Coeur Rochester, Inc. (2010) nvd “On June 11, 2008, Coeur filed its Answer and Counterclaim (#8), seeking damages for breach of contract, bad faith, and violation of Nevada’s Unfair Trade Practices Act, Nev.Rev.Stat. § 686A.310. Zurich filed the pending “Motion for Summary Judgment or, in the Alternative,…”
— Nev. Rev. Stat. § 686A.310(1)(d) — 4 cases
Zurich American Insurance v. Coeur Rochester, Inc. (2010) nvd “On June 11, 2008, Coeur filed its Answer and Counterclaim (#8), seeking damages for breach of contract, bad faith, and violation of Nevada’s Unfair Trade Practices Act, Nev.Rev.Stat. § 686A.310. Zurich filed the pending “Motion for Summary Judgment or, in the Alternative,…”
— Nev. Rev. Stat. § 686A.310(1)(e) — 24 cases
Zurich American Insurance v. Coeur Rochester, Inc. (2010) nvd “On June 11, 2008, Coeur filed its Answer and Counterclaim (#8), seeking damages for breach of contract, bad faith, and violation of Nevada’s Unfair Trade Practices Act, Nev.Rev.Stat. § 686A.310. Zurich filed the pending “Motion for Summary Judgment or, in the Alternative,…”
— Nev. Rev. Stat. § 686A.310(1)(f) — 12 cases
Zurich American Insurance v. Coeur Rochester, Inc. (2010) nvd “On June 11, 2008, Coeur filed its Answer and Counterclaim (#8), seeking damages for breach of contract, bad faith, and violation of Nevada’s Unfair Trade Practices Act, Nev.Rev.Stat. § 686A.310. Zurich filed the pending “Motion for Summary Judgment or, in the Alternative,…”
— Nev. Rev. Stat. § 686A.310(1)(g) — 6 cases
— Nev. Rev. Stat. § 686A.310(1)(l) — 1 case
— Nev. Rev. Stat. § 686A.310(1)(m) — 1 case
— Nev. Rev. Stat. § 686A.310(1)(n) — 5 cases
Zurich American Insurance v. Coeur Rochester, Inc. (2010) nvd “On June 11, 2008, Coeur filed its Answer and Counterclaim (#8), seeking damages for breach of contract, bad faith, and violation of Nevada’s Unfair Trade Practices Act, Nev.Rev.Stat. § 686A.310. Zurich filed the pending “Motion for Summary Judgment or, in the Alternative,…”
— Nev. Rev. Stat. § 686A.310(2) — 22 cases
Pioneer Chlor Alkali Co. v. National Union Fire Insurance (1994) nvd “*1242 Pioneer’s unfair claim practices claim is based primarily on NRS 686A.310. Pioneer does not explicitly set out which subsections of NRS 686A.”
Fernandez v. State Farm Mut. Auto. Ins. Co. (2018) nvd “47 But Fernandez's complaint lacks an NRS 686A.310 claim even under a liberal reading.”
Walker v. State Farm Mutual Automobile Insurance Co. (2017) nvd “The complaint alleges six causes of action: (1) breach of contract; (2) violation of the Unfair Claims Practices Act, NRS 686A.310 et seq.; (3) breach of the covenant of good faith and fair dealing; (4) breach of fiduciary duty; (5) misrepresentation; and (6) punitive damages.”
— Nev. Rev. Stat. § 686A.310(5) — 1 case
Tweet v. Webster (1985) nvd
— Nev. Rev. Stat. § 686A.310(a) — 4 cases
— Nev. Rev. Stat. § 686A.310(b) — 3 cases
— Nev. Rev. Stat. § 686A.310(c) — 7 cases
Zurich American Insurance v. Coeur Rochester, Inc. (2010) nvd “On June 11, 2008, Coeur filed its Answer and Counterclaim (#8), seeking damages for breach of contract, bad faith, and violation of Nevada’s Unfair Trade Practices Act, Nev.Rev.Stat. § 686A.310. Zurich filed the pending “Motion for Summary Judgment or, in the Alternative,…”
Pioneer Chlor Alkali Co. v. National Union Fire Insurance (1994) nvd “*1242 Pioneer’s unfair claim practices claim is based primarily on NRS 686A.310. Pioneer does not explicitly set out which subsections of NRS 686A.”
— Nev. Rev. Stat. § 686A.310(d) — 4 cases
— Nev. Rev. Stat. § 686A.310(e) — 9 cases
Pioneer Chlor Alkali Co. v. National Union Fire Insurance (1994) nvd “*1242 Pioneer’s unfair claim practices claim is based primarily on NRS 686A.310. Pioneer does not explicitly set out which subsections of NRS 686A.”
— Nev. Rev. Stat. § 686A.310(f) — 2 cases
— Nev. Rev. Stat. § 686A.310(g) — 1 case
— Nev. Rev. Stat. § 686A.310(l)(a) — 1 case
Zurich American Insurance v. Coeur Rochester, Inc. (2010) nvd “On June 11, 2008, Coeur filed its Answer and Counterclaim (#8), seeking damages for breach of contract, bad faith, and violation of Nevada’s Unfair Trade Practices Act, Nev.Rev.Stat. § 686A.310. Zurich filed the pending “Motion for Summary Judgment or, in the Alternative,…”
— Nev. Rev. Stat. § 686A.310(l)(b) — 1 case
— Nev. Rev. Stat. § 686A.310(l)(c) — 2 cases
Pioneer Chlor Alkali Co. v. National Union Fire Insurance (1994) nvd “*1242 Pioneer’s unfair claim practices claim is based primarily on NRS 686A.310. Pioneer does not explicitly set out which subsections of NRS 686A.”
Hart v. Prudential Property & Casualty Insurance (1994) nvd “§ 686A.310 was added to the Nevada Insurance Code.”
— Nev. Rev. Stat. § 686A.310(l)(d) — 1 case
Pioneer Chlor Alkali Co. v. National Union Fire Insurance (1994) nvd “*1242 Pioneer’s unfair claim practices claim is based primarily on NRS 686A.310. Pioneer does not explicitly set out which subsections of NRS 686A.”
— Nev. Rev. Stat. § 686A.310(l)(e) — 2 cases
Walker v. State Farm Mutual Automobile Insurance Co. (2017) nvd “The complaint alleges six causes of action: (1) breach of contract; (2) violation of the Unfair Claims Practices Act, NRS 686A.310 et seq.; (3) breach of the covenant of good faith and fair dealing; (4) breach of fiduciary duty; (5) misrepresentation; and (6) punitive damages.”
Pioneer Chlor Alkali Co. v. National Union Fire Insurance (1994) nvd “*1242 Pioneer’s unfair claim practices claim is based primarily on NRS 686A.310. Pioneer does not explicitly set out which subsections of NRS 686A.”
— Nev. Rev. Stat. § 686A.310(l)(i) — 2 cases
Pioneer Chlor Alkali Co. v. National Union Fire Insurance (1994) nvd “*1242 Pioneer’s unfair claim practices claim is based primarily on NRS 686A.310. Pioneer does not explicitly set out which subsections of NRS 686A.”
Hart v. Prudential Property & Casualty Insurance (1994) nvd “§ 686A.310 was added to the Nevada Insurance Code.”
— Nev. Rev. Stat. § 686A.310(l)(n) — 1 case
Pioneer Chlor Alkali Co. v. National Union Fire Insurance (1994) nvd “*1242 Pioneer’s unfair claim practices claim is based primarily on NRS 686A.310. Pioneer does not explicitly set out which subsections of NRS 686A.”
— Nev. Rev. Stat. § 686A.310(n) — 2 cases
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