ALLBEE, Justice.
This lawsuit arises from defendants' rescission of plaintiff's insurance contract for hospital and medical services. A jury awarded plaintiff actual damages of $27,143.90 on her contract claim and punitive damages of $200,000 on the theory that defendants committed a tort by denying contract benefits in bad faith. Defendants challenge both awards on this appeal, and we reverse.
The following facts are largely undisputed. In January 1978, plaintiff...
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