Section 22 Items of Loss on Which Vexatious Penalties Can Be Calculated

• Library: Damages 2012

The statutory provision for vexatious penalties provides for damages equaling percentages “of the loss.” Section 375.420, RSMo 2000. The phrase “the loss” does not include interest that the insurer may owe on the amount owed under the policy. Kyle v. Fid. & Cas. Co. of N.Y., 244 S.W.2d 418, 421 (Mo. App. S.D. 1951); Gosnell v. Camden Fire Ins. Ass’n of Camden, N.J., 109 S.W.2d 59, 73 (Mo. App. W.D. 1937). Therefore, the penalty under the statute cannot be calculated on interest that has accrued on the claim...