Alaska Supreme Court January 29, 1993, S-4388, 4723 (Underwriters at Lloyd's London v. Narrows)

OPINION

BURKE, Justice.

I. INTRODUCTION

The Narrows, a bar, restaurant and residence owned by Jeanne L. Lindley and Carson E. Lindley, was destroyed by fire in May 1989. After their proof of loss claim was rejected, the Lindleys (hereinafter “the

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insured”) sued Underwriters

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alleging breach of contract and a “bad faith” refusal to pay on their claim.