Dispute Over Policy Lapse Provided Reasonable Basis For Claim Denial, Judge Says

Dispute Over Policy Lapse Provided Reasonable Basis For Claim Denial, Judge Says

LAS VEGAS - Despite a decision by the Ninth Circuit U.S. Court of Appeals to find that coverage existed for an insured based on the ambiguity of his insurance policy's renewal statement, a Nevada federal judge on Oct. 30 held that this same ambiguity created a reasonable basis for the insurer's original denial of coverage and defeats a bad faith claim against the insurer (James Nalder, et al. v. United Automobile Insurance Co., et al., No. 2:09-cv-01348, D. Nev.; 2013 U.S. Dist. LEXIS 155643).

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