vexatious refusal to pay claim
- vexatious refusal to pay claim
-
A ground for subjecting an insurance company to a penalty. A refusal to pay founded, not upon what appear to be the facts, but only upon a possibility that later investigation may develop facts justifying refusal to pay. 29A Am J Rev ed Ins § 1697.
A refusal is held not to be vexatious if founded on what at the time appeared to be facts justifying the refusal, even though at the trial it may be shown that the true facts were exactly opposite of what they appeared to be at first. Buffalo Ins. Co. v Bommarito (CA8 Mo) 42 F2d 53, 70 ALR 1211.
Ballentine's law dictionary.
Anderson, W.S..
1998.
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