Cook v. AAA Life Insurance Company

After death of its insured, who had just paid policy premiums, bona fide dispute existed as to coverage, and as life insurance company did not unconditionally accept insured's check for payment of premiums (as it held check in its suspense account and later tried to return funds to insured's widow), insurer's actions and delay in paying policy proceeds, including time to retain outside counsel, were not vexatious and unreasonable. Court properly denied motion for Rule 137 sanctions against insurer, as court found no evidence of intentional misrepresentation or bad faith condust by insurer. (HOFFMAN, concurring; CUNNINGHAM, specially concurring.)