March 24, 2009
IMMEDIATE ACTION NEEDED
The Nevada Commerce and Labor Committee is currently considering Bill 224, an act that makes it an unfair practice for an insurer to deny the payment of an amount due under an insurance policy if that amount is not in dispute. However, the language of the bill is unclear and will lead to increased litigation in an area in which consumers are already protected by other unfair practice legislation. Further, this bill also authorizes an insured to recover costs and reasonable attorney’s fees, entitling lawyers to fees “without limitation.” This will ultimately result in increased legal costs for insurance companies, which will in turn result in higher insurance costs for Nevada citizens and encourage and reward the filing of frivolous lawsuits and “run up” litigation costs. You can view the full text of the bill online.
This bill is scheduled to be considered by the Commerce and Labor Committee in the next few days. Please e-mail the members of the committee as soon as possible to urge him/her to vote "no" on AB 224. If you are represented by a member of the committee, it will be very helpful for you to point out in your e-mail that you are a constituent.
The members of the committee include:
Talking Points for Assembly Members:
Existing law protects consumers against unfair practices by insurers.
AB 224 would increase insurance costs for consumers and businesses.
AB 224 would allow a new unfair practice for which an insurer can be sued.
AB 224 would increase litigation.
The real goal of AB 224 is to increase trial lawyer income.
Attorney’s fees may already be available to the prevailing party whether by contract or Nevada statutes.
Tips on Communicating with Committee Members: