Section 8 Insurer’s Refusal to Pay

LibraryDamages 2012

Obviously, for an insurer to be liable under the vexatious penalty statutes, the insurer must refuse to pay an insured’s demand under the policy.

As set forth in §17.12 below, an insurer has the right without penalty—if in good faith—to litigate a question of fact or an open question of law concerning whether there is reasonable or probable cause for belief. Irelan v. Standard Mut. Ass’n of Cassville, 379 S.W.2d 815, 820 (Mo. App. S.D. 1964). But when it is undisputed that a certain amount is due under the...

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