§ 26.1-11-18 — Attorney's fees

In any action against an unauthorized foreign or alien insurance company upon an
insurance contract issued or delivered in this state to a resident of this state or to a corporation
or limited liability company authorized to do business in this state, if the insurance company 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 refusal was vexatious
and without reasonable cause, the court may allow to the plaintiff a reasonable attorney's fee
and include the fee in any judgment that may be rendered in the action. The fee may not exceed
twelve and one-half percent of the amount which the court or jury finds the plaintiff is entitled to
recover against the insurance company, but the fee awarded may not be less than twenty-five

dollars. Failure of an insurance company to defend any action is prima facie evidence that its
failure to make payment was vexatious and without reasonable cause.