Progressive total-loss settlements in Nevada: how to negotiate a fair offer

Nevada regulates first-party automobile total losses through three layered authorities: the Unfair Practices statute at NRS 686A.310, the auto-specific standards at NAC 686A.680, and the salvage / total-loss definition at NRS 487.790. Under NRS 686A.310, engaging in any of the following with respect to an insured constitutes an unfair practice — and "an insurer is liable to its insured for any damages sustained" as a result — including: (a) misrepresenting pertinent facts or insurance policy provisions; (c) failing to adopt and implement reasonable standards for the prompt investigation and processing of claims; (e) failing to effectuate prompt, fair and equitable settlements of claims in which liability of the insurer has become reasonably clear; (f) compelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered; and (n) failing to provide promptly to an insured a reasonable explanation of the basis in the insurance policy, with respect to the facts of the insured's claim and the applicable law, for the denial of the claim or for an offer to settle or compromise the claim. NAC 686A.680 specifies the methods an insurer must use when adjusting and settling an automobile total loss: (1)(a) The insurer may elect to offer a replacement automobile which is a specific comparable automobile available to the claimant, with all applicable taxes, license fees and other fees paid, at no cost other than any deductible. The offer and any rejection must be documented in the claim file. (1)(b) The insurer may elect to make a cash settlement based upon the cost, less any deductible, to purchase a comparable automobile. The cost must be determined using one of three valuation methods (local-market comparables, two qualified-dealer quotations, or a statistically valid valuation source meeting specified criteria). The cash settlement amount must not be less than the lowest valuation obtained. (2) Any deviation in the amount of a cash settlement must be supported by documents giving particulars of the condition of the automobile. Any deductions from the cost — including a deduction for salvage — must be measurable, discernible, itemized and specified as to amount and must be appropriate in amount. (7) When the amount claimed is reduced because of betterment or depreciation, all information supporting the reduction must be contained in the claim file and fully disclosed to the claimant in writing. The deductions must be itemized and specified as to amount and must be appropriate in amount. NRS 487.790 defines a "total loss vehicle" as one with repair cost of 65% or more of fair market value (with specified exclusions for older vehicles, painting, electronic components per manufacturer specifications, and towing).