§ 27-4-4-5 — Vexatious refusal to pay without reasonable cause; attorney's fees

In any action against an unauthorized foreign or
alien insurer upon a contract of insurance issued or delivered in this
state to a resident of this state or to a corporation authorized to do
business in this state, if the insurer has failed for thirty (30) 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 the 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 the action. Such fee shall
not exceed twelve and one-half percent (12 1/2%) of the amount which
the court or jury finds the plaintiff is entitled to recover against the
insurer, but in no event shall such fee be less than twenty-five dollars
($25). 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.
Formerly: Acts 1955, c.203, s.5. As amended by P.L.136-2018,
SEC.174.