Judge Finds Bad Faith Claims To Be Mislabeled, Inappropriately Characterized

LAS VEGAS – An insured’s assertion that her insurer’s offer to settle her underinsured motorist (UIM) claim was in bad faith should have been pleaded under Nevada’s unfair claims practices doctrine, a Nevada federal judge ruled July 9, finding that case law requires a bad faith claim to be based on a denial of payment (Tara Ann Sherwin v. Infinity Auto Insurance Co., et al., No. 2:11-cv-00043, D. Nev.; 2011 U.S. Dist. LEXIS 72659).
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