In K.N.T. v. American Family Mutual Insurance Company, 2015 Iowa App. LEXIS 576 (Iowa Ct. App. July 9, 2015), the Iowa Appellate Court addressed emotional distress arising out of the claims process and whether lax claims handling warranted awarding punitive damages.
Eleven-year-old K.N.T. was involved in a serious accident as a passenger in an all-terrain vehicle. She was in the hospital for twenty-three days and incurred approximately $250,000 in hospital expenses. K.N.T.’s mother filed an uninsured motorist claim.
A claims manager reviewed the claim …
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