A health insurance company does not have the right to rescind a policy except in the event of a material misrepresentation or concealment of a fact by the insured. A misrepresentation is a false statement made by the insured. It becomes material if it affects the underwriting decision of the insurance company, or in other words, the missing facts are material when they would have caused the premiums to be higher. Some states, such as California, additionally require an “intent to deceive” or a willful misrepresentation of the material facts. Thus, in California, failing to appreciate the significance of medical information may not be enough for an insurance policy to be rescinded.

Blue Cross of California wrongfully cancel your individual policy? You may have a lawsuit. Click here, for a top rated law firm to evaluate your legal rights. [Sponsored Link]

A number of lawsuits have been filed recently against Blue Cross, alleging that Blue Cross has breached its contracts, along with its duty to policyholders to act reasonably. These claims rest on the assertion that Blue Cross wrongfully rescinded policies based on the insured’s alleged failure to provide important medical history on their original insurance application. Post-claims underwriting is used by insurers to eliminate the financial exposure of paying large claims of seriously ill members. Instead of investigating the medical history disclosed by the insured at the time of the application, the “post-claim underwriting” practice (declared illegal by California law) is used by the health insurer to investigate an insured’s medical history only after a claim for benefits has been submitted. As the insured seeks his or her benefits, the insurer looks for an excuse to cancel the policy and deny the claim. The insured is then left with medical costs he or she will probably not be able to pay.

If you are a Blue Cross policyholder and believe your policy was unfairly rescinded, see Blue Cross Lawsuits: Have You Been Victimized by Post-Claim Underwriting?

Blue Cross of California wrongfully cancel your individual policy? You may have a lawsuit. Click here, for a top rated law firm to evaluate your legal rights. [Sponsored Link]