Nevada Supreme: Insurer Entitled to Reimbursement for Defense Costs if No Coverage Owed
An insurer that paid to defend a policyholder against a lawsuit, but determined later that no coverage was owed, is entitled to reimbursement for its costs, a divided Nevada Supreme Court said.
In a 4-3 decision on Thursday, the high court answered a certified question by the US 9th Circuit Court of Appeals to clarify a point of Nevada law that up to now had not been addressed. The majority ruled that a carrier has a right to seek reimbursement if it reserved its rights in writing.