California appeals court rules against insurer’s rescission practices
February 3rd, 2008 Posted by: Dr. Dobson
A California appeals court dealt another blow to health plans over their policy cancellation tactics.
The 4th District Court of Appeal unanimously said insurers have a responsibility to make sure patients’ policy applications are complete and accurate before issuing coverage — not after expensive claims come in the door. Judges said plans cannot revoke patients’ policies unless they fully investigate pre-enrollment forms up front or insurers show patients intentionally misled them.
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