Vexatious Delay in Settling Claim is Required to be Based Upon Insured’s Refusal to Settle Claim
After the insured was involved in an automobile accident, the insurance company filed a declaratory judgment. However, before the declaratory action was decided, the parties agreed to arbitration proceedings. At arbitration, the insured was awarded a sum of money. However, the offer to pay was refused by the insured.
Further, the trial court found that the insurer had not acted unreasonably or vexatiously in handling the claim. A claim based upon vexatious delay in settling a claim is required to be based upon the insurer’s refusal to settle a claim. The court ultimately found that any delay was due to the insured’s actions, not by the insurer.
West Bend Mutual v. Wanda Norton, 406 Ill. App. 3d 74 (Ill. App. 3 Dist., 2010).
