Was IIC correct in these arguments?

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The Plummers owned a commercial building in which they operated two businesses. The building and its contents were insured by Indiana Insurance Company (IIC). After an explosion and fire destroyed the building, the Plummers filed a claim and proof of loss with IIC. After an investigation, IIC denied the claim due to its conclusion that the Plummers had intentionally set the fire. IIC then filed a declaratory judgment action in which it asked for a determination that it had no obligation to cover losses stemming from the fire. The Plummers counterclaimed, seeking damages for breach of contract as well as punitive damages. The jury returned a verdict in favor of the Plummers on all issues. The jury awarded the Plummers approximately $700,000 in compensatory damages (an amount that….

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