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Insureds’ Bad Faith Claim Is Not Time-Barred, Iowa Appeals Panel Concludes

(September 30, 2016, 10:24 AM EDT) -- DES MOINES, Iowa — A one-year contractual limitations period does not bar insureds’ bad faith claim against their insurer, the Iowa Court of Appeals ruled Sept. 28, because the insureds were entitled to file a separate action after an arbitration hearing and had no knowledge that the denial of their claim was premised upon an alleged “secret” policy until the arbitration hearing (Thomas Schlapkohl and Lana Schlapkohl v. American Family Mutual Insurance Co., No. 15-1612, Iowa App.; 2016 Iowa App. LEXIS 1007).

(Opinion available. Document #69-161007-006Z.)...
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