Section 32 Expenses

• Library: Damages 2012

In Willis v. American National Life Insurance Co., 287 S.W.2d 98, 105 (Mo. App. S.D. 1956), the court held that the vexatious penalty statute is partially compensatory in nature with part of its purpose being to protect the insured against expense necessary to collect on a policy of insurance. Thus, the court stated:

We think the statute, while penal, is at least partly compensatory in purpose; this purpose being to create a cause of action in the insured in order to save unto him the amount of expense...