Section 2 Purpose of Vexatious Statutes

• Library: Damages 2012

The purpose of the vexatious refusal statutes is “to make the contracting party whole in a practical sense and to provide an incentive for insurance companies to pay legitimate claims without litigation.” Overcast v. Billings Mut. Ins. Co., 11 S.W.3d 62, 67 (Mo. banc 2000). In addition, vexatious refusal penalties are meant “to correct the evil of an arbitrary refusal for the sole purpose of delaying the plaintiff in the collection of the claim.” Watters v. Travel Guard Int’l, 136 S.W.3d 100, 110 (Mo. App...