Opinion ID: 2633498
Heading Depth: 1
Heading Rank: 7

Heading: Further clarification of Salas

Text: Salas closes with the following observations: Instead, we conclude that the legislature enacted a statutory scheme providing dual coverage in instances such as this. Sound public policy dictates that a short-term lessor of motor vehicles may be required to compensate the victim, at least up to the statutory minimum, in cases where the lessee's personal insurance does not fully compensate the victim(s). Therefore, in this instance, where the lessee's personal insurance policy has first been extinguished pursuant to Alamo, [the short-term lessor] may still be required to compensate the victims up to an additional $30,000.00, the statutory minimum for one accident pursuant to NRS 482.305(1), depending on the damages proved. [12] The quoted language speaks of the lessor's requirement to compensate third-party victims. In this, we did not mean to engraft independent tort liability upon the lessor for the lessee's negligence. This requirement only speaks to the lessor's obligation to provide indemnification for the underlying tort liability of the lessee. We now clarify that the unwaived separate coverage provided by the lessor remains in place based upon the liability of the lessee to the injured third party and only to the extent of damages proved. Again, while Salas loosely states the short-term lessor's requirement to compensate a third party injured by the negligence of the short-term lessee, Salas only speaks of the duty to provide the coverage, not the lessor's liability in tort. The obligation of the short-term lessor in such situations is to place the coverage; its liability only obtains when it fails to provide the separate short-term rental insurance or security. In short, Nevada is not a direct action state, but rather, allows actions by third-party tort claimants against third-party liability coverage providers only after a judgment against the tortfeasor has been obtained.