Nevada Justices May Reshape Insurers' Decision To Defend

Law360, Los Angeles (November 10, 2016, 8:11 PM EST) -- The Ninth Circuit recently asked Nevada's high court to determine whether an insurer can be held liable for damages in excess of its policy limits even if it didn't act in bad faith, and experts say a ruling in the policyholder's favor could lead insurers to assume defense obligations earlier in order to avoid costly judgments.

A panel of the Ninth Circuit sought the Nevada Supreme Court's input on legal issues that arose in a dispute over whether United Automobile Insurance Co. must cover a $3.5 million default judgment entered against its policyholder, Gary Lewis, after the insurer failed to defend...

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