If your life insurance claim has been denied in bad faith “without reasonable or probable cause or excuse” you may file a vexatious refusal to pay claim under Missouri law. Missouri Revised Statutes Section 375.296 states,

In any action, suit or other proceeding instituted against any insurance company, association or other insurer upon any contract of insurance issued or delivered in this state to a resident of this state, or to a corporation incorporated in or authorized to do business in this state, if the insurer has failed or refused for a period of thirty days after due demand therefor prior to the institution of the action, suit or proceeding, to make payment under and in accordance with the terms and provisions of the contract of insurance, and it shall appear from the evidence that the refusal was vexatious and without reasonable cause, the court or jury may, in addition to the amount due under the provisions of the contract of insurance and interest thereon, allow the plaintiff damages for vexatious refusal to pay and attorney’s fees as provided in section 375.420. Failure of an insurer to appear and defend any action, suit or other proceeding shall be deemed prima facie evidence that its failure to make payment was vexatious without reasonable cause.

Courts have emphasized that the life insurance company must conduct an adequate investigation of the claim, have supporting facts prior to a life insurance denial, clearly state the ground for denying to pay the life insurance benefits, and if they realize there is no meritorious defense make payment without delay.

Some examples of where the insured won Vexatious Refusal to pay cases against the life insurance companies include:

• The life insurance company denied the claim without conducting an adequate investigation and they did not clearly state their reason for denial.
• A life insurance company refused to pay the benefits based on suspicion rather than established facts.
• The life insurance company continued to refuse to pay the benefits even after it became award that their defense was not meritorious.

Essentially, to determine whether your claim was vexatious refused by the life insurance company you need to show:

1. There was an insurance policy
2. The life insurance company refused to pay
3. The life insurance’s company’s refusal to pay was without reasonable cause or excuse

If your life insurance claim has been denied in bad faith, contact the experienced life insurance attorneys at Joseph & Eugene, LLC for a free consultation. We fight for the benefits you deserve when you have been wrongfully denied your insurance claim. Let our lawyers put our years of experience to work for you.