How Life Insurance Lawyer Now. Com Gets Your Nevada Life Insurance Claim PAID NOW.

Did you know that Nevada has its own laws that support the payment of a life insurance benefit to the right person?  Under Nevada law, life insurance companies are obligated to process and pay claims without excessive delay, adhering to both statutory requirements and the implied covenant of good faith and fair dealing. This duty ensures that beneficiaries receive the benefits they are entitled to under the policy in a timely and fair manner. The following analysis explores the legal framework governing these duties, including statutory provisions, case law, and the implications of bad faith in the context of delayed payments.

The Implied Covenant of Good Faith and Fair Dealing

The implied covenant of good faith and fair dealing is a cornerstone of Nevada insurance law. It requires insurers to act fairly and in good faith toward their policyholders and beneficiaries. This duty encompasses the obligation to investigate claims promptly, communicate effectively with claimants, and pay valid claims without unreasonable delay.  A life insurance company needs to pay a claim if it can, and cannot delay a life insurance claim payment for excessive investigation.

In Nevada, a breach of this covenant occurs when an insurer delays or denies payment of benefits without a reasonable basis or proper cause. Courts have consistently held that such conduct can give rise to both contractual and tort liability. For example, in cases where an insurer’s delay is found to be unreasonable, the claimant may be entitled to recover not only the policy benefits but also consequential and punitive damages.

Statutory Framework

Nevada Revised Statutes (NRS) Chapter 686A governs unfair insurance practices in the state. Several provisions within this chapter are particularly relevant to the duties of life insurance companies in processing and paying claims:

NRS 686A.310: This statute outlines specific unfair claims settlement practices, including:

Failing to acknowledge and act reasonably promptly upon communications regarding claims.
Failing to adopt and implement reasonable standards for the prompt investigation and processing of claims.

Not attempting in good faith to effectuate prompt, fair, and equitable settlements of claims in which liability has become reasonably clear.

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.

Violations of NRS 686A.310 can result in regulatory penalties and civil liability, including damages for bad faith.

NRS 686A.015: This provision prohibits insurers from engaging in unfair or deceptive acts or practices in the business of insurance. While it primarily addresses marketing and sales practices, it underscores the broader duty of insurers to act honestly and transparently in their dealings with policyholders and beneficiaries.

These statutory provisions establish a baseline for the conduct of insurers in Nevada. Failure to comply with these requirements can lead to significant legal and financial consequences.

Case Law Analysis

Nevada courts have addressed the duties of insurers to pay claims without excessive delay in several cases. While not all of these cases involve life insurance specifically, the principles established are broadly applicable.

Torres v. Nevada Direct Insurance Co. (2015): In this case, the Nevada Supreme Court emphasized the importance of adhering to statutory obligations under NRS 485.3091, which governs financial responsibility laws. Although the case primarily involved auto insurance, the court’s reasoning highlights the broader public policy interest in ensuring that claimants receive timely and fair compensation. The court noted that insurers must act in good faith and cannot avoid their obligations through procedural technicalities or unreasonable delays.

Bellas v. Life Investors Insurance Co. of America (2012): This case involved allegations of bad faith and statutory violations under NRS Chapter 686A. The plaintiff argued that the insurer delayed claim payments, took improper offsets, and denied benefits without a reasonable basis. The court held that the insurer’s conduct must be evaluated against the standards set forth in NRS 686A.310 and the implied covenant of good faith and fair dealing. While the court ultimately granted summary judgment in favor of the insurer, the case underscores the importance of clear policy language and the insurer’s duty to act reasonably in processing claims.

Allstate Insurance Co. v. Miller (2009): Although this case did not involve life insurance, it provides valuable insights into the application of the implied covenant of good faith and fair dealing. The Nevada Supreme Court held that an insurer’s failure to investigate a claim thoroughly or to evaluate it fairly could constitute bad faith. The court emphasized that insurers must give equal consideration to the interests of their policyholders and avoid placing their own financial interests above those of the insured.

The “Reasonableness” Standard

A key issue in determining whether a life insurance company has breached its duty to pay a claim without excessive delay is the reasonableness of the delay. Courts consider several factors in evaluating the reasonableness of an insurer’s conduct, including:

– The complexity of the claim and the time required to investigate it.
– The insurer’s efforts to communicate with the claimant.
– The existence of any legitimate disputes over coverage or the amount of the claim.
– The insurer’s adherence to industry standards and regulatory requirements.

In cases where the delay is attributable to the insurer’s failure to investigate the claim adequately or to process it in a timely manner, courts are more likely to find that the delay was unreasonable. Conversely, if the delay is due to factors beyond the insurer’s control, such as the need to obtain additional information from the claimant or third parties, the delay may be deemed reasonable.

Consequences of Unreasonable Delay

When a life insurance company unreasonably delays payment of a claim, it may face several consequences:

Breach of Contract: The insurer may be held liable for breach of contract if it fails to fulfill its obligation to pay the policy benefits in a timely manner.

Bad Faith Liability: If the delay is found to be unreasonable and without proper cause, the insurer may be liable for bad faith. This can result in the award of compensatory damages, including emotional distress and economic losses, as well as punitive damages designed to deter similar conduct in the future.

Regulatory Penalties: Violations of NRS Chapter 686A can result in regulatory penalties, including fines and sanctions imposed by the Nevada Division of Insurance.

To avoid liability for unreasonable delays in paying life insurance claims, insurers should adopt and implement best practices for claims handling, including:

– Conducting a thorough and prompt investigation of claims.
– Communicating clearly and regularly with claimants.
– Documenting all actions taken during the claims process.
– Ensuring that claims decisions are based on a reasonable evaluation of the evidence.
– Training claims personnel to comply with legal and regulatory requirements.

When a life insurance company fails to follow these requirements, the life insurance company may be held by a court to be required to pay the life insurance policy benefits.  Under Nevada law, life insurance companies have a duty to pay claims without excessive delay. This duty is grounded in the implied covenant of good faith and fair dealing, as well as statutory provisions that prohibit unfair claims settlement practices. Courts in Nevada have consistently held that insurers must act reasonably and promptly in processing and paying claims, and that unreasonable delays can give rise to liability for breach of contract, bad faith, and other legal consequences. By understanding and adhering to these legal principles, insurers can fulfill their obligations to policyholders and beneficiaries while avoiding the pitfalls of bad faith litigation. Cases such as Torres v. Nevada Direct Insurance Co.  and Bellas v. Life Investors Insurance Co. of America provide valuable guidance on the standards and expectations for insurers in Nevada.  In a lawsuit for you, we can make the life insurance company pay the benefits, as they should.

We are available in the Las Vegas area and in Reno as well.  We have tried cases in Las Vegas–the life insurance companies know we are very serious about getting our clients paid.  We can provide a no cost consultation to review your situation.  If we think we can help, we would be happy to get involved on your behalf.

We have done this a lot.  We take the time to know you and your case.  We start working for you NOW.  We communicate with you, respond to your calls, are available to you.  We focus on how to win your case.  If you have a problem getting your life insurance claim paid, rescission, beneficiary disputes, or your policy has been cancelled or has other issues on it, you need to contact Life Insurance Lawyer NOW.com or life insurance justice.com.  Use the form on our site, or email us, or call (888) 997-4070 or (818) 937-0937 to speak directly to an experienced life insurance lawyer.   We are the best life insurance lawyers around, and we are real lawyers, not a lawyer referral service or “middleman”, and we are nice to work with, too; we are here for you NOW.