Sec. 38a-274. (Formerly Sec. 38-268). Failure to make payment under contract or to defend in proceedings.
Sec. 38a-274. (Formerly Sec. 38-268). Failure to make payment under contract or to defend in proceedings. In an action against an unauthorized person or 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 person or 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 the person or insurer to defend any such action shall be deemed prima facie
evidence that its failure to make payment was vexatious and without reasonable cause.
(1969, P.A. 561, S. 6.)
History: Sec. 38-268 transferred to Sec. 38a-274 in 1991.