To show vexatious refusal to pay, pursuant to Section 375.296, the plaintiff must show: (1) the claimant made a demand; (2) the insurer failed or refused to pay for a period of thirty days after the demand; and (3) the refusal to pay was vexatious and without reasonable cause. A plaintiff who successfully shows vexatious refusal may be awarded, in addition to the amount due under the contract of insurance and interest thereon, damages and attorney fees….<\/p>\n

‘To support the imposition of the statutory penalty, the insured must show that the insurer’s refusal to pay the loss was willful and without reasonable cause, as the facts would appear to a reasonable and prudent person before trial.’ Russell v. Farmers & Merchants Ins. Co.<\/em>, 834 S.W.2d 209, 221 (Mo.App.1992). That the insurer has suffered a judgment adverse to its contention is not a basis upon which to impose the statutory penalties…. Rather, the issue of whether a refusal was vexatious must be based on the ‘facts as presented at the time the insurer was asked to pay under the insurance policy.’ JAM Inc. v. Nautilus Ins. Co.<\/em>, 128 S.W.3d 879 (Mo.App.2004).<\/p>\n

The jury may consider a number of circumstances in determining whether an insurer’s refusal to pay was vexatious, including the insurer’s explanation of why it refused the claim and the nature of the insurer’s investigation of the claim….’Examples of evidence of vexatiousness include a refusal to pay based on an inadequate investigation and a denial of liability without stating any ground for denial.’…The issue of whether an insurer’s reliance on the results of an investigation was reasonable is an issue for the jury….<\/p>\n

An insurance company, in defending a claim for vexatious refusal, may introduce evidence of the facts and circumstances before it when the company denied liability, to show that the company acted in good faith and upon reasonable grounds to believe it did not have any liability under the policy. (some citations omitted)<\/p>\n<\/blockquote>\n

So, when faced with an insurance claim in Kansas City, Missouri, be sure to visit with the friendly people, see the fountains, try the barbecue and mouth-watering Kansas City strip steaks, and for heaven’s sake–do not forget about your legal rights if your insurer delays or denies your claim. <\/p>\n