Nevada Third-Party Failure to Settle & Excess Exposure

• Identify all primary, umbrella and excess limits.
• Preserve settlement demands, deadlines and supporting evidence.
• Document insurer responses and reasons for acceptance, rejection or delay.
• Evaluate excess-exposure consequences under current Nevada authority.

Nevada recognizes excess-exposure duties in liability claims

Allstate Insurance Co. v. Miller explains that an insurer controlling the defense and settlement owes duties of good faith to its insured. Settlement conduct must account for the insured’s potential exposure beyond policy limits.

A policy-limits demand is not an automatic finding of bad faith. Preserve liability evidence, damages information, settlement demands, insurer evaluations, communications with the insured, and competing claims or coverage issues.