§431:8-209  Attorney's fees.  In anaction against an unauthorized insurer upon a contract of insurance issued ordelivered to a person in this State, if the insurer has failed for thirty daysafter demand prior to the commencement of the action to make payment inaccordance with the terms of the contract, and it appears to the court that therefusal was vexatious and without reasonable cause, the court may allow to theplaintiff reasonable attorney's fees and include the fees in any judgment thatmay be rendered in the action.  The fee shall not exceed twelve and one-halfper cent of the amount that the court or jury finds the plaintiff is entitledto recover against the insurer, but in no event shall the fee be less than$25.  Failure of an insurer to defend any such action shall be deemed primafacie evidence that its failure to make payment was vexatious and withoutreasonable cause. [L 1987, c 347, pt of §2; am L 2006, c 154, §7]