Section 19 Evidence to Justify Refusal of Claim

• Library: Damages 2012

The general rule is that the facts, circumstances, or evidence on which the insurer relied in denying the claim is admissible on the issue of vexatious penalties. In Scott v. Missouri Ins. Co., 233 S.W.2d 660 (Mo. banc 1950), the Supreme Court of Missouri ruled that an investigation report on which the insurer relied in denying the claim was admissible even though it was hearsay. In so holding, the Court stated:

There are many exceptions to the hearsay rule. Whether or not defendant acted in good faith and on reasonable grounds and evidence in...