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Accident leads to bizarre bad faith insurance claim

A bizarre bad faith insurance lawsuit has forced the Ninth Circuit to ask the Nevada Supreme Court to clarify the liability of an auto insurer. The case revolve around a 2007 accident where a man ran over a woman. The woman survived with severe injuries, but the man was sued by the woman's father. The man's insurer did not cover him, because they claimed his policy had lapsed -- even though he claimed his policy was still valid. As a result of this confusion, both the father and the man who caused the accident filed a claim against his insurer.

The "blame" here doesn't seem to be contested, though it is unclear from our source article. Rather, the man who caused the accident is contesting his insurance company's claim that his policy is no longer valid. The woman's father is contesting this point alongside the man as well.

The man's policy was set to expire at the end of July 2007, the same month the accident happened. But two days after the accident happened, the man renewed his policy -- well before the expiration date. Except that his insurance company sent him a notice saying that he had to pay before June 30, 2007 to renew his policy. This bizarre confluence of dates, incidents and payments has raised some serious questions about the insurance company's practices and policies.

We will have to wait and see how the case plays out, but these sorts of bad faith tactics -- if they are proven true -- are unacceptable and rob people of the coverage they deserve.

Source: Courthouse News Service, "Court Seeks Clarification of Insurance Bad Faith," Mike Heuer, June 3, 2016

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