Nevada does not recognize a legal claim for relief like insurance bad faith or negligence against the insurer of a third party. So insurers in Nevada may have little or no disincentive to engage in practices such as those the Judge described. The Nevada Legislature could change this law, if it wanted to. Your attorney can explain further.

While Mr. Malikowski is absolutely correct in his summary of related Nevada law on "bad faith" insurance practice, there is something you might do. First, there is nothing to stop you from suing the driver, personally, who rear-ended you. It is his insurance company's obligation to provide him legal counsel and to pay any settlement or judgment that results - provided his policy was current and there is no other dispute between that driver and his insurance company. If the insurance carrier continues to refuse to cover him, then HE has the right in Nevada to bring a lawsuit against HIS OWN insurance company. What some have done in your circumstances is to offer to the at-fault driver that if he will give you an "assignment of right" that gives you the opportunity to sue his company as though you stepped into his shoes, you will not pursue the claim against him, personally. That is where bad faith litigation comes in, and there have been multi-million dollar verdicts in such instances in Nevada. If the insurance company is, indeed, engaging in bad faith claims settlement practices, it needs to be held accountable, and juries LOVE to do just that!