Production of Insurance Policies

NRCP 16.1(a)(1)(D) requires a party to affirmatively produce, without waiting for a request, “any insurance agreement under which any person carrying on an insurance business may be liable to satisfy part or all of a judgment which may be entered in the action or to indemnify or reimburse for payments made to satisfy the judgment and any disclaimer or limitation of coverage or reservation of rights under any such insurance agreement.”  There is probably a practical reason for this requirement as, if no coverage exists or the coverage is limited, the litigation might resolve itself with little need for court intervention.

What happens when an insurance agreement is not produced pursuant to this rule?  The question was addressed during a May 9, 2012 hearing in 08a573889.  Plaintiff previously moved for an order compelling a defendant to comply.  The order was granted but defense counsel subsequently withdrew.  DC Bulla ordered defendant to either produce the available policy or an affidavit stating there was no policy.  If neither was produced, the answer would be stricken.

Remaining Defts still have counsel per Mr. Sampson; no insurance policy produced yet. Mr. Alexander resubmitted a Motion to Withdraw (set 6/5/12), and no Affidavit was provided from Defts that insurance information does not exist. COMMISSIONER RECOMMENDED, all Defts have UNTIL 6/15/12 to PRODUCE insurance policies, or PRODUCE a sworn statement in Affidavit format that they do not have insurance applicable to this claim; failure to comply WILL RESULT in striking the answer (all Defts except Juan Pena);

Where a policy exists but is produced unreasonably late, which appears to be more than 14 days after the early case conference pursuant to NRCP 16.1(a), a monetary sanction may result. This occurred in an April 25, 2012 hearing in A-11-647859-C.

Colloquy re: delay producing information from the Insurance Co. COMMISSIONER RECOMMENDED, motion is MOOT; Defense counsel to make a $100 CONTRIBUTION to Legal Aid Center of Southern Nevada for failure to timely comply with 16.1. Commissioner to prepare recommendation.