20-406

20-406. Attorneys' fees in action against
insurer

In any action against an unauthorized insurer pursuant to section 20-403, if the
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 of insurance, 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's fee and include such fee in any judgment
that may be rendered in the action. The attorney's fee shall not exceed one third of the
amount which the court or jury finds the plaintiff is entitled to recover against the
insurer, but in no event shall such a fee be less than one hundred dollars. 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.