58-8-16 Vexatious refusal by unauthorized foreign or alien insurer to make payment--Attorney fees ...
Vexatious refusal by unauthorized foreign or alien insurer to make payment--Attorney fees of plaintiff.
In any action against an unauthorized foreign or alien insurer upon a
contract of insurance issued or delivered in this state to a resident thereof or to a corporation
authorized to do business therein, if the insurer has failed for thirty days after demand prior to the
commencement of the action to make payment in accordance with the terms of the contract, and it
appears to the court that such refusal was vexatious and without reasonable cause, the court may
allow to the plaintiff a reasonable attorney fee and include such fee in any judgment that may be
rendered in such action. Failure of an insurer to defend any such action shall be deemed prima facie
evidence that its failure to make payment was vexatious and without reasonable cause.
Source: SL 1966, ch 111, ch 12, § 10.