USA – NEVADA Trends and Developments Contributed by: John Desmond, Alexis Taitel and Alice Samberg, Dickinson Wright PLLC
Takeaways • Primary insurers should carefully evaluate settle- ment offers. • Primary insurers are not automatically relieved of liability if the insured’s claim settles within the combined policy limits of the primary and excess carriers. • If the primary insurer suspects that the claims may exceed its policy limits, it should communicate early and often with the excess insurer regarding risks, exposure, and settlement offers. Conclusion The throughline across Kuhn , Eskew , and North Riv- er suggests that insurers and their counsel should shore up the quality, timing, and documentation of their claims handling and settlement conduct. Their strategies may carry amplified consequences in both first-party and third-party contexts. Offers that appear unduly low relative to robust medical evidence of seri- ous injuries or delayed tenders may increase exposure to bad-faith findings and punitive awards. Similarly, claims determinations grounded in cursory review or outdated medical assumptions could invite juror and judicial criticism alike.
Primary insurers confronting well-documented and severe injuries are likely to mitigate the risk of a bad- faith finding down the road by initiating meaningful set- tlement efforts early, evaluating policy limits demands through the lens of potential excess exposure, and memorialising their analyses with robust documenta- tion. Where claims may exceed policy limits, primary carriers should promptly inform excess insurers of risk, exposure, and settlement posture; excess carri- ers, in turn, should expect and request frank updates to preserve subrogation positions if reasonable settle- ments are declined. These developments are forward-looking markers for coverage counsel: invest in rigorous medical and legal evaluation, document reasoned settlement deci- sions, coordinate across layers, and modernise policy terms. Doing so will mitigate bad-faith risk, position carriers to defend close calls, and improve outcomes in Nevada’s evolving litigation environment in which juries are tending to issue significant damages awards against insurers.
335 I NSURANCE L I T IGATI O N 2026
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