Insurers in Wisconsin need not be mulcted by extortionate or questionable claims if they adhere to the standards of care which we have set forth above.
-- Anderson v. Continental Ins. Co., 271 N.W.2d 368, 85 Wis.2d 675 (Wis., 1978), discussing why the rules Wisconsin adopted for bad-faith insurance claims won't lead insurers to pay claims they otherwise would rightfully have rejected.
What's interesting is that the sense in which the Supreme Court of Wisconsin used that word is only the 2nd or 3rd most common definition of the word mulct:
tr.v. mulct·ed, mulct·ing, mulcts
1. To penalize by fining or demanding forfeiture.
2. To acquire by trickery or deception.
3. To defraud or swindle.
(Source.) The picture is one of the many images that come up if you google image search mulct.