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Nevada suit alleges GEICO let default judgment grow for years
The complaint says GEICO informed the policyholder more than two years after a lawsuit was filed, after a judgment exceeding $500,000 was entered against him.
A Nevada policyholder is suing GEICO, alleging the insurer ignored warnings that a third-party claim had moved toward court and left him unaware as the dispute escalated. According to the complaint, filed Sept. 3 in Clark County District Court and removed to federal court, the policyholder only learned about the lawsuit more than two years after it was filed, when GEICO told him a judgment of more than $500,000 had been entered against him.
The suit stems from a 2018 rear-end collision on Flamingo Road in Las Vegas. The complaint says GEICO was notified of the other driver’s claims on June 22, 2018, the day after the crash, and that a verbal agreement with the claimant allegedly resolved the matter, but the policyholder later alleges GEICO continued to ignore subsequent signals over the following two years.
The complaint says that after the other driver hired an attorney, the attorney sent a letter of representation to GEICO and GEICO’s adjuster responded on June 27, 2018 that the claim was resolved. It further alleges that in June 2019 the other driver’s attorney demanded the policyholder’s $25,000 per-person policy limits, with GEICO’s adjuster again stating the claim was closed.
HousingWire reports the lawsuit centers on alleged inaction by GEICO as the claim progressed toward a court judgment, and the filing describes the policyholder’s late notice as a key issue in the dispute.