Opinion ID: 1868073
Heading Depth: 2
Heading Rank: 2

Heading: Refusal to pay

Text: State Farm argues that the circuit court erred in denying the JNOV because there was insufficient evidence that State Farm refused Dhyne's claim. This argument is premised upon State Farm's contentions that it had never specifically told Dhyne that her claim was refused, that State Farm eventually paid the policy limits, and that any delay in payment was a result of Dhyne's failure to provide proof of the amount of damages she had sustained. State Farm also argues that Dhyne filed her suit prematurely because it had thirty days to investigate the claim under the terms of the policy. The applicable standard of review requires this Court to view the evidence in the light most favorable to the verdict. There was evidence at trial that in Dhyne's first conversation with Hill, the claim representative, he stated unequivocally that State Farm would not cover her claim. Given this refusal, Dhyne was not foreclosed from filing suit under section 375.420. There was also evidence that State Farm persisted in its refusal to pay after it was informed that Dhyne had lost wages and incurred medical bills that were covered by her policy. She informed Hill of her injuries and lost wages. State Farm did not pay. Dhyne documented her damages in her responses to State Farm's discovery. State Farm did not pay until over three months had passed. In the interim, Dhyne incurred attorney's fees in her effort to compel State Farm to pay under the terms of a policy that State Farm knew covered Dhyne's injuries. When there is evidence that an insurer's bad faith efforts have hindered a legitimate insurance claim, the action for vexatious refusal should be submitted to the jury. Morris v. J.C. Penney Life Ins. Co., 895 S.W.2d 73, 79 (Mo.App.1995). There is sufficient evidence to support the jury's determination that State Farm refused to pay and hindered Dhyne's efforts to recover on her policy.