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BANKERS LIFE CO. v. AETNA CAS. & SUR. CO.

No. 84-280.

366 N.W.2d 166 (1985)

BANKERS LIFE COMPANY, Appellee, v. The AETNA CASUALTY & SURETY COMPANY, Appellant.

Supreme Court of Iowa.

April 17, 1985.

Attorney(s) appearing for the Case

Glenn L. Smith and Hugh J. Cain of Duncan, Jones, Riley & Finley, Des Moines, for appellant.

Kent M. Forney, David J.W. Proctor and William F. Fanter of Bradshaw, Fowler, Proctor & Fairgrave, Des Moines, for appellee.

Considered en banc.

WOLLE, Justice.

This case demonstrates how the language and structure of an insurance contract can obscure its meaning when its basic fabric consists of standardized printed forms. Bankers Life Company (Bankers Life) purchased from defendant Aetna Casualty & Surety Company (Aetna) a blanket surety bond which provided coverage for securities losses of the type Bankers Life thereafter sustained. While the bond was in force, Bankers Life lost in excess of $5,000...

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