Warning
Info
Warning
Info
Simple English definitions for legal terms
refusal to pay
Read a random definition: USAF
A quick definition of refusal to pay:
Refusal to pay is when an insurance company doesn't want to give you the money you deserve from your insurance claim. This can happen even if you have a valid claim and the insurance company has no good reason to deny it. It's also called vexatious delay or vexatious refusal to pay.
A more thorough explanation:
Definition: Refusal to pay, also known as vexatious delay, is when an insurance company unjustifiably refuses to pay an insurance claim. This can happen even when there are no hard facts to support the belief that the claim is not valid.
Example: John's car was damaged in an accident, and he filed a claim with his insurance company. However, the insurance company refused to pay the claim, stating that they believed John had caused the accident on purpose. Despite there being no evidence to support this claim, the insurance company continued to refuse to pay, causing John undue stress and financial hardship.
Explanation: In this example, the insurance company's refusal to pay was based on a mere suspicion that John had caused the accident on purpose. This suspicion was not supported by any hard facts, and as a result, the insurance company's refusal to pay was considered vexatious delay. This type of behavior can be frustrating and unfair to policyholders who are counting on their insurance company to provide the coverage they paid for.