Section 3 Standard of Liability

• Library: Damages 2012

Under §§ 375.420 and 354.335, RSMo 2000, liability for penalties is imposed when the insurer “has refused to pay such loss without reasonable cause or excuse.” Under § 375.296, RSMo 2000, liability is imposed if the refusal to pay “was vexatious and without reasonable cause.” Caselaw has similarly defined “vexatious” as without reasonable excuse. Hay v. Utica Mut. Ins. Co., 551 S.W.2d 954, 958 (Mo. App. S.D. 1977); Hous. Auth. of City of Clinton ex rel. Evans Elec. Constr. Co. v. Baumann, 512 S.W.2d 436...