More in the unfolding litigation in California dealing with Blue Cross of California’s
practices of rescinding health insurance policies is reported by Lisa Girion in the L. A. Times. You can find the story here
. I’ve discussed challenges to Blue Cross’s rescission practices often in the past year or so.
The latest twist is that Bill Shernoff
has filed suit on behalf of one of his clients seeking an injunction to put an end to the Blue Cross company-wide practice of rescinding coverage without any effort to investigate whether the applicant intended to misstate his or her health history on their applications for coverage. Blue Cross contends that any omission or misstatement of past medical history on an insurance application justifies rescission, even if the error is unintentional or innocently made. Shernoff argues this violates California law.
For what it’s worth, the new California State Insurance Commissioner, Steve Poizner,
agrees with Shernoff, at least to the degree that the misstatements are “small, inadvertent and innocent.”
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